Tesla Taps Markets to Fund Expanded Model 3 Production

Tesla has decided to tap into the equity markets to fund its ambitious Model 3 production plans, despite previous statements to the contrary. This move involves a significant equity deal, leading to dilution for current shareholders. Tesla faces challenges in building the necessary production capacity and making the Model 3 profitable, as it currently loses money on every car sold. The market has reacted to this news with some sell-off, but it was largely expected. There is considerable speculation about the true demand for the Model 3, with concerns about order cancellations and production capabilities.

Why did Tesla decide to access the capital markets?

• To fund the production of the Model 3

• To increase shareholder dividends

• To expand their marketing efforts

• To reduce their debt

What financial challenge does Tesla face with their new car model?

• Increasing the price of their existing models

• Making a $35,000 car profitable

• Reducing the cost of their $100,000 car

• Decreasing production costs for all models

How did the market react to Tesla's equity raise?

• The market was surprised and reacted negatively

• The market expected it and reacted negatively

• The market expected it and reacted positively

• The market was surprised and reacted positively

What is a major concern regarding Tesla's new model orders?

• The limited production capacity

• The lack of marketing efforts

• The potential for order cancellations

• The high cost of production

What must Tesla manage to overcome their current challenges?

• Manage production and sales effectively

• Increase marketing budget

• Improve battery technology

• Reduce employee count