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Tesla (TSLA) Upsizes Notes Offering for Model 3 Production
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Tesla Inc. (TSLA - Free Report) has announced that it will issue and sell $1.80 billion in aggregate principal amount of senior notes due in 2025. This latest announcement came barely a week after the first announcement of raising $1.5 billion, through the offering of senior notes due 2025. The company intends to use the proceeds of these notes offering to support the production of its latest Model 3 sedan and other corporate objectives.
Tesla is set to sell $1.8 billion of eight-year unsecured bonds at a 5.25% yield. In fact, in spite of a spate of skepticisms, there has been no dearth of funds for Tesla’s to popularize electric cars. In the second quarter, Tesla made total cash investment of $1.16 billion for development of Model 3’s capacity and to amplify its battery output. Launched in Jul 2017, the price of the new sedan vehicle starts at $35,000.
The company aims at steadily speeding up Model 3 sedan’s production to 1,500 vehicles in third-quarter 2017 and achieving a run rate of 5,000 units per week in 2017 and 10,000 vehicles per week in 2018.
So far, the company has been raising funds through a combination of equity and convertible bonds offering, which in due course, gets converted into shares.
Tesla’s shares have outperformed the industry it belongs to in the last six months. During this time frame, shares of the company surged 27.9%, whereas the industry edged down 0.2%.
Cummins has an expected long-term earnings growth rate of 12%.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
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Tesla (TSLA) Upsizes Notes Offering for Model 3 Production
Tesla Inc. (TSLA - Free Report) has announced that it will issue and sell $1.80 billion in aggregate principal amount of senior notes due in 2025. This latest announcement came barely a week after the first announcement of raising $1.5 billion, through the offering of senior notes due 2025. The company intends to use the proceeds of these notes offering to support the production of its latest Model 3 sedan and other corporate objectives.
Tesla is set to sell $1.8 billion of eight-year unsecured bonds at a 5.25% yield. In fact, in spite of a spate of skepticisms, there has been no dearth of funds for Tesla’s to popularize electric cars. In the second quarter, Tesla made total cash investment of $1.16 billion for development of Model 3’s capacity and to amplify its battery output. Launched in Jul 2017, the price of the new sedan vehicle starts at $35,000.
The company aims at steadily speeding up Model 3 sedan’s production to 1,500 vehicles in third-quarter 2017 and achieving a run rate of 5,000 units per week in 2017 and 10,000 vehicles per week in 2018.
So far, the company has been raising funds through a combination of equity and convertible bonds offering, which in due course, gets converted into shares.
Tesla’s shares have outperformed the industry it belongs to in the last six months. During this time frame, shares of the company surged 27.9%, whereas the industry edged down 0.2%.
Tesla currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Fox Factory Holding Corp. (FOXF - Free Report) , Cummins Inc. (CMI - Free Report) and Ferrari N.V. (RACE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has a long-term growth rate of 16%.
Cummins has an expected long-term earnings growth rate of 12%.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>