Tesla Drivers in Italy Cover 1078 Km on a Single Charge

Tesla Drivers in Italy Cover 1078 Km on a Single Charge

Tesla Drivers in Italy Cover 1078 Km on a Single Charge

The company said in its second-quarter earnings letter that there has been growing demand for the Model S and Model X. It's unclear whether that's from Tesla's different marketing approach, but it shows demand isn't waning for Tesla's luxury options just because the Model 3 launched.

Tesla Inc said on Monday it would raise about $1.5 billion through its first-ever high-yield junk bond offering, as the USA luxury electric auto maker seeks fresh sources of cash to ramp up production of its new Model 3 sedan.

"We could lower our ratings on Tesla if execution issues related to the Model 3 launch later this year or the ongoing expansion of its Models S and X production lead to significant cost overruns", Standard & Poor said in a statement. Last year the company produced 84,000 vehicles, which was a gain of 64% from the prior year. Kelty worked in research and development at Panasonic for 15 years before he joined Tesla in 2006. Essentially, Tesla is borrowing money from investors and agreeing to pay them the money back plus interest. Musk is optimistic that Tesla will be able to scale up production to 20,000 Model 3 cars per month by 2017-end. The credit rating agency also assigned Tesla a Corporate Family Rating (CFR) of B2, based on the expectation that Tesla can ramp the Model 3 and sell 300,000 units during 2018 at a gross margin of around 25%. Kallo recommends investors to own Tesla stock going into the model 3 ramp, adding that a positive reception from early buyers could significantly increase the value of brand Tesla.

Spotify on Xbox rumors heat up
However, the Xbox console has been missing support for the service, but that may be about to change. Now, The Verge's sources have confirmed that the app is being tested internally at Microsoft .

"The Nirvana is that we can make the auto and get paid for the vehicle before we have to pay our suppliers, which then the faster you grow, the faster your cash position grows", CEO Elon Musk said on a conference call last week. Chief Executive Elon Musk told analysts last week on Tesla's earnings call to expect debt rather than an equity tap. "Obviously, that's like the promised land right there".

Tesla reported last week that its net loss in the latest quarter grew 15 percent, to $336 million, from a loss of $293 million in the year-ago period. This is key to the company's short-term customer relations and long-term survival, as the Model 3 is now amassing some 1,800 reservations per day. In the past when Tesla has been short for cash, the company turned to sales of stock. "Tesla's a company that's always on to the next big innovation or the next big advancement and they raise money well in advance of when the public finds out about that".

As long as Elon Musk keeps talking about solar roofs and more Gigafactories, cash burn could remain quite high.

Related news