Tesla has announced a bond sales which will attempt to raise £1.15 billion needed to fund the “rapid scaling” required to ramp-up production of its Model 3 EFV saloon.
The California-based EV Manufacturer is set to lift the amount it has raised since the start of 2014 to over £6 billion with the latest action marking the first time that the brand has turned to the markets in relation to an issue of straight debt, the FT reported today.
Ben Kallo, a motoring analyst for Baird, told the newspaper that Tesla had been “burning through $2bn to $3bn a year” as it develops the manufacturing infrastructure required by the Model 3 – a vehicle it hopes will take it into the mainstream.
Launching its bond sale on Monday, a Tesla spokesman confirmed that the fundraising bid was intended to "further strengthen its balance sheet during this rapid period of scaling with the Model 3."
Tesla has said it has over 500,000 pre-orders and customers have put down £1,000 deposits for the Model 3.
Estimates from the pre-orders suggest around 11,500 are from the UK, the second highest level in Europe.
Standard and Long Range Tesla Model 3s are available from launch.
The standard car is priced at £26,650 and has a 220-mile range and the ability to accelerate to 60mph in 5.6 seconds on its way to a 130mph top speed.
The Long Range version of the EV saloon is priced at £33,500 and claims a 310-mile range, 5.1 second dash to 60mph and 140mph top speed.
Tesla has been growing its UK retail presence and added a 15th store, in Cambridge, in April.