Tesla seeks $1.5billion in funding for Model 3 production

Tesla is aiming to raise $ 1.5 billion in funding to be able to ramp up production of the new Model 3.

Model 3 launched just over a week ago with the first 30 reservation holders getting their hands on a production model.

At the time, CEO Elon Musk said that Tesla faces “manufacturing hell” trying to get the new electric car out to customers. 

Today, they confirmed that they are raising $ 1.5 billion in debt in order to expand production of the Model 3. 

The Californian-based car manufacturer is aiming to produce 10,000 Model 3s every week by 2018. 

They wrote in a press release today: “Tesla today announced that it intends to offer, subject to market and other conditions, $ 1.5 billion in aggregate principal amount of its senior notes due 2025 (the “Notes”). 

“The Notes will be senior unsecured debt obligations of Tesla. 

“The interest rate, redemption prices and other terms of the Notes are to be determined.

“Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes.”

Tesla is hoping that the Model 3 becomes a profitable mass market car. 

Last week, the company confirmed that it was planning on spending $ 2 billion in capital expenditures during the latter half of the year to increase production. 

Musk also confirmed on Twitter that ‘Day One’ reservation holders would get “something special” when they receive their car. 

Over 100,000 put a £1,000/$ 1,000 deposit down for a Model 3 on day one when reservations opened. 

The CEO has not confirmed what the ‘something special’ is yet.

However, when the Model S and Model X cars went on sale customers could sign up for ‘Signature reservation’ which ensured they got the car earlier than anybody else and a special reward.

This reward was an exclusive paint colour called ‘Signature Red’. 

Whether or not the Model 3 will follow in the footsteps of the Model S and Model X has not yet been confirmed. 

Model 3 reservations have been averaging about 1,800 cars a day since last July.