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Tesla Model 3 Gets Funded For Production

tesla model 3

Were you a bit worried that the much-awaited Tesla Model 3 won’t see production because of funding? The car business is quite an expensive one, and the production of the Model 3 was almost halted because of it.

But it looks like Tesla CEO Elon Musk’s plan to boost production to 500,000 units by the end of 2018 is now possible, thanks largely to investors’ faith and trust in the young entrepreneur. Unlike many products and concepts that are still looking and begging for investors, Musk was the only face needed for these big businessmen to trip over themselves to raise money for the Tesla Model 3.

Musk was simply seeking $1.5 billion last week, and he managed to raise $600,000 of that four hours after his announcement. Now, we heard reports that he was able to sell a half-million worth of Junk bonds to investors, which totaled to $1.8 billion, surpassing the initial amount he was seeking.

The investment is in the form of “eight-year unsecured bonds at a rate of 5.30 percent.” The investment is not without its risk, of course. Such investment yields bigger profit in the long run, but it’s also possible to lose your money when the company you invested your money in made some bad decisions along the way. Hopefully, we won’t see Musk do that.

One of the biggest challenges that face the production of Tesla Model 3 is its dependency on Gigafactory to supply each and every battery—both the standard- and long-range model. Though there is no problem about bringing in profit from the manufacturing of the battery itself, even Musk admitted that he was worried about the lack of battery cells.

Only time will tell if there’s going to be a shortage of cells in the future. When that happens, Tesla might need to cut short its production of the long-range model of battery and stick with the standard-range model, which uses fewer cells.

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