Tesla is planning to use a cash injection from a fresh round of stock offers to ramp up its Model 3 production, according to reports out of the US.
Reuters reports that the Tesla stock offering will net up to US$1.7 billion (AU$2.35 billion) for the US electric vehicle-maker, enabling it to boost production and reduce delivery times for the Model 3.
This will come as welcome news to the hundreds of thousands of future customers who have already handed over their deposits for the ‘3’ - which included more than a quarter of a million in the first three days following the unveiling of the Model 3 prototype.
Orders at this stage are estimated at more than 370,000, and rising, helped in no small way by the car’s confirmed US$35,000 (AU$48,500) starting price in the US.
Some of these customers are faced with a delivery schedule that could stretch beyond 2020, but a round of stock sales to speed-up the process could see delivery wait times shortened.
Tesla said in a prospectus that up to 8.2 million shares will be on offer during the offering, priced at US$204.66 (AU$283.20) per share.
The prospectus also pointed to an emergence from the loss-making phase of its development, with the carmaker outlining plans to cut costs as it shifts to profitability.
Tesla also alluded to the Model 3’s order book as an indicator of future financial success. Orders have poured in despite no advertising and the overwhelming majority of customers having never seen nor driven the new EV.
Company CEO, Elon Musk, said he would ensure Tesla responded to customer demand by ramping up the Model 3’s production facilities to cope with 500,000 vehicles per year by 2018.
Musk is also reportedly contributing to the fund-raising activities, with plans to sell 2.8 million of his own shares with a value of around US$600 million (AU$830 million).
Meanwhile, Tesla plans to finalise its Model 3 design before the end of next month.
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