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Tesla captures $ 1 billion in convertible bonds and shares

Automotive News

The maker of luxury electric vehicles Tesla has raised $ 1bn (€ 933m) worth of convertible bonds and common stock before the launch of its new electric model 3.

Tesla will offer 250 million dollars (233 million euros) in common stock and 750 million euros (700 million euros) in convertible bonds due in 2022, the company announced today, according to Efe Dow Jones.
These funds will be used to strengthen the company’s balance sheet as it enters a fully-fledged phase of Model 3 that is expected to begin in the middle of this year.

They will also serve to protect Tesla in its transition from maker of small quantities of expensive cars to a more standardized actor, explained the same source.

It is expected that the Model 3, whose deliveries of new reserves will start from mid-2018, debuts with a price around US $ 35,000 (32,658 euros in exchange) and a battery autonomy of 345 kilometers, said Tesla .

Model 3 will compete directly with General Motors Chevrolet Bolt, while current Tesla products – the Model X and Model S – compete with luxury brand cars such as Porsche or Bayerische Motoren Werke, among others.

Tesla executives have pointed out that more capital will be needed to boost operations, since even though the group raises its revenue every quarter, it does not make a profit because of the high costs of its technology.

The Economist 03/16/2017 – 12:10The maker of luxury electric vehicles Tesla has raised $ 1bn (€ 933m) worth of convertible bonds and common stock before the launch of its new electric model 3.

Tesla will offer 250 million dollars (233 million euros) in common stock and 750 million euros (700 million euros) in convertible bonds due in 2022, the company announced today, according to Efe Dow Jones.
These funds will be used to strengthen the company’s balance sheet as it enters a fully-fledged phase of Model 3 that is expected to begin in the middle of this year.

They will also serve to protect Tesla in its transition from maker of small quantities of expensive cars to a more standardized actor, explained the same source.

It is expected that the Model 3, whose deliveries of new reserves will start from mid-2018, debuts with a price around US $ 35,000 (32,658 euros in exchange) and a battery autonomy of 345 kilometers, said Tesla .

Model 3 will compete directly with General Motors Chevrolet Bolt, while current Tesla products – the Model X and Model S – compete with luxury brand cars such as Porsche or Bayerische Motoren Werke, among others.

Tesla executives have pointed out that more capital will be needed to boost operations, since even though the group raises its revenue every quarter, it does not make a profit because of the high costs of its technology.

El economista 16/03/2017 (Translation Soft)

 

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