Tags: tesla model 3 | july | elon musk

Tesla Model 3 on Track for July, but Musk May Need More Dough

Image: Tesla Model 3 on Track for July, but Musk May Need More Dough

The Tesla Model 3 (Tesla)

By    |   Friday, 24 Feb 2017 07:46 AM

The Tesla Model 3, the company's newest mass-produced electric vehicle, will be delivered in July as scheduled, Elon Musk has told analysts, but the automaker may need more cash to pull it off.

"The Model 3 is designed for manufacturing," Musk told analysts on Wednesday, adding that the vehicle will be easier to build than the Model S and Model X, which sold for more than $100,000 each, according to Bloomberg.

"It's a very compelling car, and we understand manufacturing a lot better than we did in the past," Musk added, saying that Tesla will be able to build 5,000 units per week by the end of 2017.

Musk told the analyst that Tesla could need more cash as it moves closer to the launch and may see additional funds from investors, reported Reuters.

"According to our financial plan, no capital needs to be raised for the Model 3 but we get very close to the edge," Musk said on the conference call. "We're considering a number of options but I think it probably makes sense to raise capital to reduce risk."

Tesla anticipates another $2 billion to $2.5 billion in capital expenses before it launches the Model 3 and has $3.4 billion on hand, said Reuters. Tesla stocks rose this week to a year-high of $287.39 from a year low $167.84 last February.

Ivan Feinseth, director of research at Tigress Financial Partners, told Reuters he believed Tesla will be able to successfully raise the money it needs.

"You have to feed the ducks while they're quacking," Feinseth said. "If they came to the market now they would be well received."

Barron's reported on Thursday, though, that some analysts are taking a more cautious approach with Tesla. CFRA's Efraim Levy, for example, downgraded Tesla's shares to "Sell," although he raised his target price $35 to $240.

Complicating matters, Tesla will lose current chief financial officer Jason Wheeler in April, after being on the job for 15 months, said Bloomberg.

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The Tesla Model 3, the company's mass-produced electric vehicle, will be delivered in July as scheduled, Elon Musk has told analysts, but the automaker may need more cash to pull it off.
tesla model 3, july, elon musk
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2017-46-24
Friday, 24 Feb 2017 07:46 AM
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