Musk Wants Another $1.15B To Rev Up Model 3 Production

The Tesla Model 3 is set to arrive in the market as scheduled and it would seem that the costs are going as projected. Just to make sure that absolutely everything goes smoothly, however, Elon Musk is asking for another $1.15 billion from investors. Considering that the company is looking to manufacture up to 500,000 vehicles a year, that extra cash would go a long way towards propelling Tesla to new heights.

The goal that Tesla has when it comes to its production of EVs is about six times the volume that it is doing right now, Quartz reports. As expected, this adds a considerable amount of pressure that affects manpower, machinery, logistics, and of course, the capital.

Back in February 14th, Tesla had its most recent investor call where Musk assured the money men that the production cost is well in order. At the time, however, the CEO did mention that more money might be needed in order to put additional measures that will keep the progress they have already made from getting derailed.

Cost overruns are particularly problematic for a car maker with Tesla’s history and it simply cannot afford to be delayed any longer. The company has never made a deadline and has always fallen behind on its promises. The investors and the renewable market still has high hopes for the company’s prospects, but it would definitely help Tesla’s case if it can provide a win with the Model 3 production.

According to the blog post that the company put up, this money will come in the form of stocks and senior debt. Musk himself will be putting up $25 million in common stock, which is just to be expected.

“Tesla (NASDAQ: TSLA) today announced offerings of $250 million of common stock and $750 million aggregate principal amount of convertible senior notes due in 2022 in concurrent underwritten registered public offerings. In addition, Tesla has granted the underwriters a 30-day option to purchase up to an additional 15% of each offering,” the post reads.