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.

In what ways might Tesla's financial strategies impact current shareholders?

What factors are contributing to the uncertainty around the demand for Tesla's new models?