Today’s SEC filing from Tesla reveals that the automaker will raise $2 billion in common stock for Model 3 production, with the final reservation count for the new EV confirmed to be around 373,000 deposits.
As of May 15th, around 373,000 Model 3 reservations have been made, with 8,000 reservations cancelled since the April 1st reveal of the new car—not including around 4,200 duplicate submissions, announced by Tesla today.
The same SEC filing revealed that the automaker will look to raise $2 billion through stock offerings for investment in manufacturing for the upcoming Model 3 production, which will be managed by Tesla’s recent hiring of a star production manager from Audi.
A chunk of the new $2 billion investment will come from CEO Elon Musk, who will buy around 5.5 million shares from Tesla, 2.77 million of which he will sell publicly to cover the taxes he owes on his purchase. The net amount Tesla earns from Musk exercising his options is around $600 million, leaving the company the remaining $1.4 billion to raise publicly through secondary stock offerings.
The CEO will also donate around 1.2 million shares to charity (valued around $250 million), which should also help with the tax burden.
So, onward to producing thousands of the Model 3 by the end of next year and 500,000 cars by the end of 2018? Eh, that still sounds crazy.
Edited to correct that Tesla aims to produce 500,000 cars by the end of 2018, not next year. Next year they plan to be producing the Model 3 en masse, which still sounds crazy.