Tesla is now one step closer to the production of the Model 3

Tesla Model 3

Tesla prepares for the production of the Model 3.

About two weeks ago, Tesla announced the intention of raising the amount of $1.15 billion from a stock and senior notes offering, which represents a very useful infusion of capital for the company to fund the production of the Model 3.

Tesla’s request for capital triggered the attention of a Chinese company called Tencent, which paid the amount of $1.8 billion in Tesla stake, showing a real interest in electric cars and self-driving technology.

With the size of the investment, Tencent showed clearly that they want a piece of the Tesla company, actually a piece of the American technology.

Tencent owns now about 5% of the Tesla shares, and plans to buy even more Tesla shares in the future.

The question is the following:

Can Tesla start the production of the so expected Model 3 on time?

We know that Tesla ended last year (2016) with $3.4 billion in cash, and with the recent capital infusion of $2 billion from the stock market, we can say that they have about $5 billion available to ramp-up the production of the Model 3.

Beside this, Tesla announced the plan to spend half of the amount ($2.5 billion) before July 2017, so before starting the production of the Model 3.

Tesla seems to make all these massive cash investments just because they want to start the production of the Model 3 as quick as possible.

However, all these alarmist claims made by different analysts, seem to forget the fact that Tesla Motors is not only a car company, it is also an energy company, and with SolarCity in their portfolio, they have a bright future ahead for them and their investors.

It might be an intense moment for Tesla now, but I think that Elon Musk knows what he does, and the Model 3 vehicles will be delivered on time.

We are used to delays when it comes to Tesla, but in the case of the Model 3, even if we need to expect a little more time, we are glad that Tesla will soon produce electric cars for the masses on a large scale.

Magda Savin
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Magda Savin

I write about the renewable energy sector, electric cars and climate change issues.
I love nature and good food, so I travel all over the world to see new places and meet new people.
Magda Savin
Magda Savin
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