By Jon LeSage Tesla is serious enough about needed cashflow for hitting Model 3 production targets to ask for its first-ever round of junk bonds.
Tesla executives started roadshows today meeting with investment fund managers to raise about $1.5 billion in high-yield junk bonds, according to the IFR financial publication. Production will be ramping up soon to make ready for the target to increase vehicle production about five-fold to 500,000 units next year.
Other funding channels used by Tesla have been equity offerings and convertible bonds, which will eventually convert over to Tesla shares. Going that route raised $1.4 billion for Tesla in March though
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