The price of the auto is will likely be a little higher than that of the Model 3, which is expected to be close to $37,000.
The notes in the offering will be convertible into cash and/or shares of Tesla’s common stock at Tesla’s election, it said.
“No capital needs to be raised for the Model 3, but we get very close to the edge”, Musk said. This year it is expected to manufacture more than 100,000 Model 3s, alone, in a rush to satisfy orders for the 400,000 deposits placed for the pure-electric 3 Series-rival.
That said, this probably isn’t representative of exactly how the Model 3 will end up looking. Multiple reports indicate that Model Y will take inspiration from the Model X crossover, including the top-hinged “falcon wing” rear doors.
It will be interesting to see if Tesla, a company that has become notorious for missing deadlines, will meet its July production-start date.
The anticipation caused auto enthusiast to envision what Model Y would look like.
During Tesla’s Q&A call, Musk mentioned about the Model Y compact SUV by saying it is an “obvious priority after the Model 3”.
The Model Y will have more advanced features, such as a new computer that can give the SUV driverless control abilities.
The rush to increase the production levels is a bid to increase profits on the business.
It has submitted plans to expand its Fremont factory and bump production from about 80,000 vehicles a year to a half-million.
The Model 3 is Tesla’s first mass-market vehicle priced at $35,000 before federal tax incentives.
Musk expressed confidence in an earnings call at the time that Tesla electric vehicle production would climb to 500,000 next year.
Musk’s expansion plans will test the limits of the capabilities of Tesla’s suppliers and those of his own plant in Freemont, California.
Tesla founder Elon Musk shared a picture of what seems to be his tunnel boring efforts in Los Angeles.