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    Tesla Motors' mass-market Model 3 electric cars are seen in this handout picture from Tesla Motors on March 31, 2016.

    Elon Musk Raises Money to Help Fund a Cheaper, More Available Tesla Car

    © REUTERS/ Tesla Motors
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    Entrepreneur Elon Musk is trying to raise US$1.5 billion to fund development of his most affordable electric car yet.

    Elon Musk's Tesla car empire makes some of the most advanced vehicles in the world, and they are also all electric.

    However, the billionaire has said that he wants to make his cars more affordable so they can reach the mass-market. 

    The entrepreneur plans to offer US$1.5 billion worth of bonds to professional investors, all in an attempt to generate more cash.

    It is hoped that this will help open Tesla's appeal to consumers who may not have been able to afford one of the company's luxury vehicles. 

    ​​The announcement that the Model 3 will be launching at a more modest US$35,000 in the US from November of this year, has meant that more consumers will now be able to own a Tesla car.

    Tesla claimed to have already received over 518,000 orders for the new lower priced vehicle.

    A typical Tesla car will currently cost you over US$100,000. Musk's plans to raise funds to launch the Model 3 will help to strengthen its current product range and enable more people to purchase the luxury car.

    First production model of Tesla Model 3 out the assembly line is seen in this undated handout photo from Tesla Motors.
    © REUTERS/ Handout
    First production model of Tesla Model 3 out the assembly line is seen in this undated handout photo from Tesla Motors.

    "We're not at this point considering an equity raise," Tesla CEO Elon Musk said in a second quarter earnings call.

    "We are thinking about debt, but we're not thinking about an equity raise."

    ​The Quarter Earnings Report, released in August 2017, has shown that Tesla holds more than US$3 billion cash, however this is a decrease of US$360 million from the end of 2016.

    The figures also showed that automotive sales doubled between the first half of 2016 and the first half of 2017.

    The company's total automotive sales more than doubled between the first half of 2016 and the first half of this year from more than US$1.9 billion to more than US$4 billion.   

    A big part of Tesla's capital, estimated to be at around US$2 billion, will be directed at a number of projects over the course of the current year, including the Model 3, construction of a Nevada lithium-ion "gigafactory" and improvement of car charging infrastructure. 

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    Tags:
    carmakers, vehicles, cars, car market, business, Tesla Model S, Tesla, Tesla Motors, Elon Musk, United States
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