Tesla Set To Conquer EVs in 2017 With Secured Credit And Production
There's been mixed messages if Tesla needed to raise its corporate debt. over the last few months, with Elon Musk two months ago, releasing a Tweet saying that raising equity, 'Won't be necessary for either.' 'Either' being for Tesla Motors or their newly aquired SolarCity Corp. a solar roof installation company. However, according to way a SEC filing Tesla now have an expanded credit line of $1.2 billion from $1 billion from Deutsche Bank, with the potential for another $50 million.
It seems that the extra cash will go to the production of the Model 3 and to keep their SolarCity investment buoyant for the coming year. This has helped Tesla's shares rise by 3%, the best since October. 'I don’t think it’s that shocking that over time Tesla needs more funding,''It’s young and has enormous growth plans, so over time I would expect more equity raises and more revolver capacity.' stated David Whiston a Morningstar Inc. analyst. Tesla also reported a profit this quarter in October, which was the first to come out in two years.
Tesla have a lot on their plate at the moment with an expected production of 500,000 by 2018, from 50,000 in 2015 and the completion of their battery plant in Reno, Nevada to keep them busy. With the acquisition of SolarCity Corp. Tesla hope to not just provide electric vehicles, but also the whole gamut from solar power to electrical storage.
After all the money and acquisition talk, the main focus should be on the upcoming Model 3 which is planned to be the electric vehicle for the masses. At a price point of $35,000, a range of around 220 miles and supercharger stations becoming more numerous, not just at home but also abroad, the Model 3 is the car to watch next year. Tesla already have 373,000 preorders for the Model 3 with a deposit of $1000 from each customer. Ordering one now will mean that you won't see it until 2018, but the planned increase in production hopes to remedy this point.
Tesla's Gigafactory in Nevada plans expansion to provide the power units on future productions. The factory will also produce solar panels integrated with roof tiles for home charging. "We need to get roughly a third the size of the original building to support half a million cars a year," said Musk.
The last 12 years have seen the company grow into what seems to be one of the leader in the EV market and the promises made in 2016 could come into fruition in the coming year. It's looking more likely that the Tesla master plan from all those years ago is now going to be a reality.