Tesla raises $1 billion capital ahead of Model 3 production

Tesla has secured a $1 billion (around Rs 6,317 crore) cash injection ahead of production of the Tesla Model 3, which will start in July.

Tesla CEO Elon Musk had previously said that while his company had enough capital to meet the demands for the Model 3, it would take it "very close to the edge".

The manufacturer has raised capital to help production and ease the financial risk associated with the production run, leading to a rise in its share price which was also helped by reports of its future model plans, including the Model Y compact SUV, according to New York financiers. 

It had been thought that production of the mass-market electric car could be delayed until 2018, but Musk confirmed to investors that it would produce more than 5000 Model 3s per week by the end of this year and 10,000 units per week by some point next year.

Musk indicated the electric saloon, which has an entry-level price of $35,000 (about Rs 22.10 lakh), may not be unveiled until this July, when limited production will begin. Full-scale production is slated to start in September.

Tesla said it aimed to deliver a combined total of 47,000 to 50,000 Model S and Model Xs in the first half of this year, but did not give a figure for Model 3 target sales.

It did, however, reaffirm its pledge to deliver 500,000 vehicles in 2018 and one million in 2020, when its £3.8 billion (Rs 24,004 crore) Gigafactory is expected to reach full capacity – a sharp rise from the 80,000 delivered in 2016.

Tesla also hasn't provided an update on the number of reservations taken for the Model 3, which is believed have sold out for the first year; advance reservations totaled 373,000.

Meanwhile, Tesla's chief financial officer, Jason Wheeler, will leave the company in April to take a job in the public sector after a year with Tesla. His predecessor, Deepak Ahuja, will return to the role. Ahuja joined Tesla in 2010 after 15 years with Ford.

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Tesla confirms Model 3 production to begin this July 

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