Tesla, the world renowned innovator in the electric car space, is planning to sell around 9.6 million shares for approx $2 Billion to boost the production of its latest model 3.
In a regulatory filing filed today, the company stated that out of the total 9.6 Million shares, 6.8 Million will be from the company and 2.8 million will be from Elon Musk. The shares, averagely priced at $205, will bring in over $2 Billion of cash and the company will be able to accelerate the production of its model 3.
Tesla originally expected to hit the mark of 500,000 cars production per month by 2020, however, seeing the initial success of its model 3 and over 325,000 pre registration, it has gotten more ambitious and plans to reach that target by 2018 to commit a timely delivery to all the customers who have pre booked the model 3.
Tesla is producing around 80,000-90,000 vehicles this year, taking that toll to 500,000 is almost an increase of over 600% and the company is not leaving any stone unturned. After seeing the initial response, Elon Musk wants to make sure that the company has capital to meet the level of expectations and production.
However, recent time has been a mixed bet for the company. After a report of two of Tesla’s senior guys leaving the company before the production of model 3 starts, the shares dipped around 4%. Well, that can not be considered as a big dip, as Tes;a’s shares have had a great year.