Tesla Plans $1.5 Billion Bond Market Debut to Fund Model 3

  • Electric-car maker plans first sale of non-convertible debt
  • Spending on sedan capacity, battery output burns through cash

Tesla rolled out its new Model 3, the more affordable sedan with over 500,000 customers eagerly awaiting the chance to buy. Bloomberg's Tom Randall checked out some of the electric car's features, and explains why Tesla and its CEO Elon Musk face an uphill climb in meeting the Model 3's intense demand. (video by Henry Baker), (Source: Bloomberg)

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Having tapped the equity market eight times for capital over the past seven years to fund Tesla Inc.’s growth -- and cover its losses -- Elon Musk is turning to the bond market.

Needing cash to finance his audacious bet on the mass production of a more affordable electric car, the Model 3, Musk plansBloomberg Terminal to sell $1.5 billion of eight-year bonds. Tesla officials are meeting with investors across the U.S. this week to drum up demand. The debt sale will test Musk’s ability replicate the fervent following he’s built among stock investors, who’ve bought into his vision of a clean-energy future and pushed the shares up 67 percent this year.