Looking at its baseline specifications, which corresponds to the often-advertised $35,000 version of the vehicle, the Model 3 has a range of 220 miles, accelerates from a standstill to 60 miles per hour (mph) in 5.6 seconds and has a top speed of 130 mph. Meanwhile Tesla's stock continued to surge on...faith (?) and no one seemed to give a solitary shit that Tesla's fundamentals were nonsense.
Ever felt like owning a Tesla Model X but the pricing was out of your range?
The notes announced Monday would mature in 2025, though Tesla did not disclose interest rates or other terms of the securities. CEO Elon Musk acknowledged on the earnings call that the company may look to raise capital, but was not considering an equity raise.
But how does the Tesla Model 3 stack up against, say, the Volvo S60 - a auto that received a 5-star rating in all safety categories? "Obviously, that's like the promised land right there". Deliveries for non-employees will begin in the fourth quarter of this year. The company sold about $965 million in convertible notes and $400 million in stock in March. In the past when Tesla has been short for cash, the company turned to sales of stock.
"They are constantly spending on the next big innovation, whether the public knows what that is or not", James Albertine of Consumer Edge Research LLC. Musk plans to add a semi truck to the lineup after the Model 3 and has said that will be unveiled in September.
Tesla ended the second quarter with a little more than $3 billion in cash, the lowest on hand in more than a year. Tesla now makes fewer than 10,000 cars per month on average, but almost half a million buyers have placed a deposit for the company's cheapest ever auto. After that comes the Model Y, a smaller crossover scheduled to arrive as soon as late 2019.
Tesla, which also makes batteries and solar panels, has been burning through its cash at a rapid rate.
Tesla is slowly beginning to face stiff competition from other countries as the world races toward lithium ion battery mass production.