Cash-Strapped Tesla Unleashes Capital Outlay For Model 3

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About: Tesla, Inc. (TSLA)
by: Hans Centena
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Hans Centena
Research analyst
Summary

Tesla would heavily access the debt markets (more than equity) to meet current production targets for Model 3 EVs.

A decline in volumes would push the company into tighter liquidity due to the higher-priced Model 3.

The bulk of sustainable demand for Model 3 EVs resides at the lower end of the price curve, while the company is also looking to sustain delivery levels.

Image credit: 3dortgen.com

Tesla Inc.'s (NASDAQ: TSLA) electric vehicles (EV) are high quality, fun to drive and worthy of the high price it commands. But underneath that shiny sleek facade, the company has been