WASHINGTON DC – Tesla Motors CEO Elon Musk has laid out an ambitious launch plan for the upcoming Model 3 that would transform it into a mainstream automaker by 2018 – but the California battery-carmaker will need anywhere from $1.4 billion to $1.7 billion to fund the new model’s rollout and production plans, Tesla said.
It would mark the second big stock offering in barely a year for the money-losing Tesla, and word of the move sent the maker’s shares tumbling, though the stock, traded on the New York Stock Exchange as TSLA, is still well ahead of where it was prior to the March 31 unveiling of the Model 3.
In a public filing, Tesla said it needs cash to complete the development of the new battery sedan, its first to target a mainstream market segment. It also noted that it “may also use a portion of the net proceeds (for) working capital and other general corporate purposes.”
Tesla has been burning through cash at a quick pace, first to bring the big Model X SUV to market and now to finalize development of the Model 3, which will be offered at a starting price of around $35,000.
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