Tesla Seeks Up to $1.15 Billion as Musk Hedges Model 3 Risk

Tesla burned through cash in the fourth quarter and expects as much as $2.5 billion in expenditures during the first half of 2017 before bringing out the Model 3, its first mass-market auto.

When Lucid unveiled the Air late past year, it said a 100-kilowatt-hour battery pack offering 315 miles of range, and a 130-kwh pack affording 400 miles of range would be offered. In comparison, the base model Tesla Model S 60 lists from $71,300 before incentives.

The Model Y will also have the promised updated electrical architecture that will allow Tesla to offer full autonomous driving capability. Musk states that this new architecture has a brain that is “40 times” more powerful compared to the ones on the previous Teslas.

At the 2017 Geneva Motor Show, Ian Robertson, BMW’s head of sales and marketing, talked to auto and Driver about the new Tesla.

The starting price of the Model 3 is likely to be around $37,000 (Rs 23.37 lakh), with the Model Y expected to be slightly more expensive.

It appears that MarketWatch misinterpreted Autocar article and reported that the Model Y would be seeing a 2018 release.

“According to our financial plan, no capital has to be raised for the Model 3”, Musk said during the company’s fourth-quarter earnings call, according to Business Insider. There have been leaks of what the Model Y might look like, even if there are no official concept models that are out yet.

This should provide the cheapest SUV with a range of around 370km.

We now learn that the issue has been resolved and Tesla started deliveries of the first few Model S/X 100D units.

Tesla’s biggest problem right now is its production capabilities. It’s an all-electric four-door with the performance and luxury to face off against the venerable Tesla Model S. Lucid has just announced pricing for the Air, and it’s going to be a lot cheaper than expected. The company anticipates about $2.5 billion in capital expenditures through the end of this year.

Cost overruns are particularly problematic for a auto maker with Tesla’s history and it simply can not afford to be delayed any longer.

The company would need to deliver between 23,500 and 25,000 vehicles during the quarter in order to stay on track.