Published: Sun, August 13, 2017
Science | By Hubert Green

Tesla Model 3 gets choice of 50kWh or 75kWh battery

Tesla Model 3 gets choice of 50kWh or 75kWh battery

As the report highlights, Tesla has been working on the development of a new supercomputing hardware suite which will help Tesla achieving its goal of introducing full automation to the automobile seat.

Making the announcement at an event for shareholders, Musk suggested a lack of battery supply from Tesla Gigafactory could cause a future bottleneck for the Model 3's production.

As Elon Musk's sells debt to bankroll Tesla Inc.'s (TSLA) launch of the mass-market Model 3 electric auto, he's reportedly asking for a sweetheart deal.

Tesla raised $1.8 billion, $300 million more than expected, in its first high-yield junk bond offering Friday.

The publication claims when asked about the current status of their relationship, Elon and Amber 'looked at each other and laughed'.

CFRA equity analyst Efraim Levy said the bonds provide Tesla with funds "at least into mid-2018". "Then you'd go back to the equity markets and hope it's not too late" to raise more money.

The eight-year bonds were priced at a record-low yield of 5.3% - a touch higher than initial talk of 5.25%.

With the Model 3 Tesla has brought together the technologies, design and manufacturing processes that have the potential to produce a profitable, high-volume electric vehicle that also has advanced autonomous driving capabilities. The lower base price of the Model 3, beginning at $35,000, is well shy of the usual Tesla cost of around $90,000.

At the launch, Musk, however, warned that Tesla would face months of "manufacturing hell" as it increases production of the sedan.

The session, which featured a gleaming blue Model 3 on display, was part of a four-day sales campaign that included an invitation from Musk for investors to tour the company's assembly plant.

Tesla has burned through billions of dollars - $1.2 billion in cash in the second quarter alone- in its effort to develop electric cars.

Tesla's cash burn has prompted short-sellers like Greenlight Capital's David Einhorn to bet against the Palo Alto, California company.

Goldman Sachs acted as left lead, while Morgan Stanley, Bank of America, Citigroup, Deutsche Bank and RBC came in as bookrunners.

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