Tesla to Raise About $1.15B as it Accelerates Launch of New Model 3

US electric vehicle manufacturer Tesla said on Wednesday it would raise up to $ 1.15 billion in financial markets before launching its new M...

US electric vehicle manufacturer Tesla said on Wednesday it would raise up to $ 1.15 billion in financial markets before launching its new Model 3 sedan, with which it wants to embark on the niche market.

Tesla to Raise About $1.15B as it Accelerates Launch of New Model 3
According to the press release, Tesla expects to issue $ 250 million worth of new shares and to carry out in parallel a US $ 750 million convertible bonds maturing in 2022. In the case of high demand, these amounts will be increased by 15 %.
"Tesla wants to raise up to the US $ 1.15 billion before launching its Model 3"
The billionaire Elon Musk, boss and founder and major shareholder of Tesla, will participate in this fundraising by buying himself for 25 million US new shares.

Tesla said in a statement that the transaction would enable it, among other things, to "strengthen its balance sheet and further reduce the risks associated with the rapid increase in the scale of business due to the launch of the Model 3".

Tesla is expected to start this summer producing this mid-sized sedan, which will be sold about half as much as its existing luxury models. It triggered high demand, and will, therefore, force Tesla to accelerate its production.

"Tesla Seeking $1.15 Billion From Stock And Debt Sale Ahead Of Model 3"
The arrival of fresh capital should also reduce the concerns about the liquidity of the group issued last year by some observers following the announcement of the purchase of the solar energy producer SolarCity.

Tesla currently has a market capitalization of just over US $ 41 billion. Its share took just over 2% Wednesday evening in the electronic exchanges following the close of Wall Street following the announcement of the next fundraiser.

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