Tesla has raised $1 billion to gear up for the impending Model 3 launch this year. Meanwhile, footage of the suspected Tesla Model 3 prototype has been released.
2017 is a big year for Tesla as the company is set to venture into the mid-class market with the upcoming entry-level sedan model. The stakes are high for the Tesla Model 3 to do very well in terms of sales, given that the automaker has been focused on the upper-class market with its expensive car models. To ensure the Model 3's future, Tesla is now raising $1 billion a few months before its much-awaited launch.
According to USA Today, the $1B stock offering for Tesla Model was announced last Wednesday. Parts of the fund would reportedly be used for important matters upon the car model's release. For one, the common stock of the model will receive $250 million funding, while $750 million will be reserved for convertible senior notes.
Tesla also stated that the fund would be used to strengthen the company's balance sheet. Likewise, the company would also need to mind the possible negative fallouts of the Tesla Model 3 launch this year. Other general corporate matters will also be attended by the billion-dollar stocks.
Underwriters will be granted with a 30-day option to buy portions of the stocks, reaching up to an addition 15 percent of each offering. Up to $25 million worth of common stock will be purchased by Tesla CEO Elon Musk.
The Tesla Model 3 is probably a risk worth taking for the company, as it is projected to become a great source of income with a larger number of potential buyers. Many car enthusiasts, who could not purchase Tesla's high-class Model S and Model X sedans, will likely get the Tesla Model 3 instead.
In other news, the alleged Tesla Model 3 prototype was spotted on the streets near the SpaceX hyperloop test track. Musk's other company, which is dedicated to space missions, has a headquarter in Hawthorne, California, and this is where the suspected Model 3 prototype was seen. According to Electrek, the suspected prototype was caught in a footage, which was posted on Unplugged Performance's Instagram account.
It is possible that the prototype sedan spotted near the SpaceX HQ and Tesla's Design Studio is the Tesla Model 3, given that the garage of Unplugged Performance is just near the area. The footage shows that the prototype vehicle is similar to the pre-alpha prototype model showcased by Tesla back in March 2016. There are no noticeable changes between the recently spotted prototype and the one presented by Tesla during the Model 3's first unveiling.
If the prototype car spotted in Tesla's garage is indeed the Tesla Model 3, this gives assurance to the public that the sedan is indeed coming this year. To note, only two working Model 3 prototypes, plus a single plastic model, have been presented by the company so far.