Page 24 - ARUBA TODAY

Tuesday 8 augusT 2017 BUSINESS
A24

This image shows the Tesla Model 3 sedan. Tesla is raising $1.5 billion as it ramps up production
of its Model 3 sedan, its first mass market electric car, the company said Monday, Aug. 7, 2017.
(Courtesy of Tesla Motors via AP)

Tesla raising cash in push to get Model 3 out

PALO ALTO, Calif. (AP) — time, CEO Elon Musk wor- cern” about whether Tesla
Tesla is raising $1.5 billion as ried some investors when will be able to meet its goal
it ramps up production of he warned that Tesla was of making 10,000 Model 3s
the Model 3 sedan, its first about to embark on “at per week by next year.
mass market electric car. least six months of manu- But that will cost money,
The company said Mon- facturing hell” as it at- and Tesla is burning through
day that it planned to of- tempts to get Model 3 pro- cash at a rapid rate. The
fer senior notes due in 2025 duction to 5,000 cars per company spent $1.2 billion
and would use the offer- week by December. in the second quarter pre-
ing’s proceeds to further But last week, Musk clari- paring for the Model 3’s ar-
strengthen its balance fied his comments, and rival. Tesla had $3 billion in
sheet during rapid scaling said Tesla should be able cash on hand at the end
of the Model 3. to overcome any supplier of the second quarter, but
Tesla delivered the first 30 issues and other potential said it expects to spend $2
Model 3s to employees obstacles. Musk said inves- billion in the second half of
at the end of July. At the tors should have “zero con- this year.q