jpd80 Posted May 19, 2016 Share Posted May 19, 2016 May 18, 2016 @ 6:11 pm Tom Randall Bloomberg Tesla Motors Inc. now holds about 373,000 reservations for the Model 3 electric car due late next year following customer cancellations of about 8,000 cars and 4,200 duplicates canceled by the company. The numbers were reported as part of a Tesla filing to raise $1.4 billion in a share offering to pay for the accelerated launch of the car. ---------------------------------------------------------------------- The $1.4 billion sale of shares falls within most Wall Street expectations after Tesla CEO Elon Musk indicated earlier this month that the company would need to raise "some combination of equity and debt and make sure the company has a good buffer of cash." The company says it plans to make 500,000 Model 3 a year by 2018. Contact Automotive News Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 19, 2016 Author Share Posted May 19, 2016 So, Tesla holds $373 Million in deposits and intends to raise another $1.4 Billion via a share offering, Using other people's money to achieve their objectives as opposed to going into debt... 500,000/year production by 2018 is a very steep ramp up of production, everything needs to work pin perfect to meet those targets... Is this another Musk target that will never be achieved... Quote Link to comment Share on other sites More sharing options...
J-150 Posted May 19, 2016 Share Posted May 19, 2016 That's okay. They weren't capable of building those extra units anyway. Quote Link to comment Share on other sites More sharing options...
BORG Posted May 19, 2016 Share Posted May 19, 2016 There will be allot more cancellations. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 19, 2016 Share Posted May 19, 2016 So, Tesla holds $373 Million in deposits and intends to raise another $1.4 Billion via a share offering, Using other people's money to achieve their objectives as opposed to going into debt... 500,000/year production by 2018 is a very steep ramp up of production, everything needs to work pin perfect to meet those targets... Is this another Musk target that will never be achieved... 500k/year production is not going to happen. Period. Paragraph. End. Of. Story. Quote Link to comment Share on other sites More sharing options...
blazerdude20 Posted May 20, 2016 Share Posted May 20, 2016 500k/year production is not going to happen. Period. Paragraph. End. Of. Story. Unless they get bought out. Would not suprise me to see an auto company partner with them / or buy majority share. Doesn't mean it's a great business decision but it seems like something FCA, VW or even GM would do. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 20, 2016 Author Share Posted May 20, 2016 Unless they get bought out. Would not suprise me to see an auto company partner with them / or buy majority share. Doesn't mean it's a great business decision but it seems like something FCA, VW or even GM would do. To give some perspective, 500K/year is more than 42,000 per month....I can't see Tesla getting to there inside two years Quote Link to comment Share on other sites More sharing options...
351cid Posted May 20, 2016 Share Posted May 20, 2016 It's Tucker and 1948 all over again... 1 Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted May 20, 2016 Share Posted May 20, 2016 Unless they get bought out. Would not suprise me to see an auto company partner with them / or buy majority share. Doesn't mean it's a great business decision but it seems like something FCA, VW or even GM would do. With their current market valuation no one could afford to buy them, or really want to - with the capital you'd need to do it you could just build the vehicle yourself. With the current burn rate they will still run out of cash and need to do another round of funding before it launches. Quote Link to comment Share on other sites More sharing options...
mustang_sallad Posted May 21, 2016 Share Posted May 21, 2016 500k/year production is not going to happen. Period. Paragraph. End. Of. Story. Oddly enough, I think even Musk has admitted that this is an unlikely target to hit. Kind of defeats the purpose of setting a goal that's out of reach if you let everyone know that you know it's out of reach. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 21, 2016 Author Share Posted May 21, 2016 Oddly enough, I think even Musk has admitted that this is an unlikely target to hit. Kind of defeats the purpose of setting a goal that's out of reach if you let everyone know that you know it's out of reach. A lot of investors will still go out and buy the next issue of stock - that's the plan for Tesla in order to keep money rolling in, people hear headlines and believe wnat they want. Quote Link to comment Share on other sites More sharing options...
papilgee4evaeva Posted May 22, 2016 Share Posted May 22, 2016 If the Model 3 sold 500K/year, it would instantly become the best-selling sedan in America. That is not happening this decade. Quote Link to comment Share on other sites More sharing options...
atomcat68 Posted May 22, 2016 Share Posted May 22, 2016 If the Model 3 sold 500K/year, it would instantly become the best-selling sedan in America. That is not happening this decade. I do think Musk said it would take several years to complete all the orders but still, that is too much to do! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.