Tesla Raising $1.7 billion will it be enough?
Earlier we reported that three major items need to be in place for the accelerated ramp up to 500,000 vehicles. One of those items was the buildout of the Tesla Fremont factory which would require a large sum of cash. That large sum of cash will be coming in the form of a stock offering that should bringing about 1.7 billion in cash.
So what does Tesla still need to do with that money? First and foremost they have to build out the Fremont factory to create a new assembly line. Currently they have 2 assembly lines for the S and X that merge at final assembly. The factory has plenty of unused space so it is a matter of buying the equipment and hiring staff to run the third assembly line. In the prospectus Tesla mentions that some of the money will be allocated to other operational endeavors.
Being able to produce a car is one thing being able to deliver, service, and operate those vehicles is an extremely important aspect of how Tesla sets itself apart from other manufactures. Tesla needs to expand the Supercharging network to meet the needs of the Model 3. Musk recently announced an expansion of the supercharging network and reviewing the map provided on TeslaMotors.com shows a robust expansion by the end of 2016. The crowed sourced map supercharge.info identifies 32 permitted or under construction supercharging locations in North American and 19 in Europe (including 2 for our Norwegian friends). Additionally Tesla needs to expand its ability to deliver and service those vehicles. Expanding current or building new service/delivery centers will be very important to maintain customer satisfaction.
With the hiring of Peter Hochholdinger as VP of vehicle production and the announced stock offering Tesla appears to be moving fast in their efforts to deliver the Model 3 on time. Do you think Tesla is on the right path to deliver the Model 3 and maintain customer satisfaction?