Tesla to raise $1.15 billion in series of offerings

Following a news article from MarketWatch about the company releasing the Tesla Model Y SUV next year, the electric vehicle manufacturer’s shares immediately reacted positively.

This is not the first preview of a Tesla Model 3 prototype.

The company wants to introduce numerous models in the coming years. Tesla already builds its mainstay Model S luxury sedan and the Model X sport utility vehicle.

The arrival of the SUV, along with its first mainstream vehicle, the Model 3, are tipped to finally push Tesla into profit.

“According to our financial plan, no capital has to be raised for the Model 3”, he said.

Tesla right now is 100% focused on getting the Model 3 ready for mass production, which is to say that the Model Y probably isn’t even on the company’s radar at this point.

Pressure is on for Tesla to meet its Model 3 deadline. It is also expected with eight cameras for 360 degrees view as well as 12 ultrasonic sensors.

The Model Y will have more advanced features, such as a new computer that can give the SUV driverless control abilities.

Goldman Sachs, Deutsche Bank AG, Citigroup Inc. and Morgan Stanley are leading the stock offering, Tesla said in its prospectus. For this to happen, the computer will have to be 40 times stronger than the norm with the current Tesla lineup.

One of the challenges for Tesla in Model Y will be incorporating battery without dropping range. Musk predicts Tesla should be capable of building 500,000 cars per year by 2019.

The details about Model Y are scarce at the moment. It is projected that the Model Y might possibly the most successful vehicle that would come out from Tesla.

Tesla is in a race against time to achieve the kind of production levels needed to turn around what is still a cash-hungry operation.

Tesla produced nearly 84,000 vehicles in 2016 and plans to make half a million in 2018, then 1 million in 2020.