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Tesla Expands Credit Line Ahead of Model 3 Launch
Tesla Inc. has added about $800 million to its previous $3 billion in credit agreements as it prepares to launch production later this summer of its $35,000 Model 3 electric sedan.
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Tesla Inc. has added about $800 million to its previous $3 billion in credit agreements as it prepares to launch production later this summer of its $35,000 Model 3 electric sedan.
The company noted earlier this week that it would be increasing its spending in the second quarter. Tesla burned through $622 million in cash in the first quarter of 2017, roughly half what it raised during the period through debt and equity offerings. The EV maker estimated in May that its capital spending would reach about $2 billion by the time the Model 3 debuts.
The Model 3 will be the Tesla’s first mass-market car, with sales forecast to reach 500,000 per year in 2019. Last year the company collected roughly 300,000 refundable $1,000 deposits from would-be buyers of the car.
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