What's Behind Tesla's $1.5 Billion Bond Sale

2018 Tesla Model 3

The Wall Street Journal reports that Tesla finished its latest quarter with $3 billion in cash, $2 billion of which it plans to spend in the second half of the year.

The loss, which comes to $2.04 a share, was better than analysts had expected but still 37% higher than what the company reported in the same quarter previous year. Tesla's revenue was up 119.6% compared to the same quarter past year. This is key to the company's short-term customer relations and long-term survival, as the Model 3 is now amassing some 1,800 reservations per day.

In other news, insider Jeffrey B. Straubel sold 109,100 shares of Tesla stock in a transaction dated Tuesday, May 9th. However, it is overmatched by the Model 3 in speed and acceleration.

That puts this Model 3, presumably a 310-mile Long Range version with the larger of two battery options, in third place for energy efficiency among all new cars on sale in the USA for 2017.

Tesla's Model 3, the company's first ever mass market vehicle, is beating competitors left and right with its combination of range, power and speed. A hundred more will be built in August, 150 in September, followed by a ramp up to 5,000 a week by the end of December, the company said. Tesla founder and chief, Elon Musk, proclaimed it a great day for the company, saying the goal was to make a terrific electric vehicle "that everyone can buy".

Last week, when the firm revealed its earnings for the three months through June, Tesla showed that it still had $3 billion in cash on hand.

With thunderous applause and rock music blasting in the background, Tesla CEO Elon Musk drove the Tesla Model 3 across the stage at an unveiling event.

The company has yet to make a profit in its history. The proceeds will be used to help Tesla bring out the Model 3, its cheapest model yet, and for general corporate purposes. The total actually is 455,000 when cancellations are subtracted, he said. Bank of America Corporation dropped their price objective on shares of Tesla from $170.00 to $165.00 and set an "underperform" rating for the company in a research note on Wednesday, April 26th. Coverage of the launch was massive and new orders for the Model 3 spiked to 1,800 a day in the following week.

The base Model S with the $6000 for autopilot and $4000 for full self driving costs $77500 but now has about $10,000 in tax incentives from the United States and California governments.

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