Summer launch plans of the Tesla Model 3 have been aided by a $1bn cash brace after chief executive Elon Musk made the recent ominous announcement that money was running thin with the ambitious target looming.
Wall Street’s intervention aimed to protect the company’s share price, which sustained a significant 10 per cent blow following Musk drawing awareness to dwindling funds in light of the summer goal.
The hefty $1bn injection was actually less than had been expected by analysts and other professionals, indicating the predicament of the company and the scale of the project. Tesla plans to apply hedging measures as a layer of protection for its assets in the event of further adverse price movements.
This lower than anticipated amount of required capital means that the Tesla share price can stand its ground more easily with alleviated pressure.
Tesla gained massive momentum from a spike in share price that began at the end of last year, and it is this that has so far fuelled the company’s progress. The period accounted for Tesla’s stock growing by 55 per cent.
A recent regulatory filing made by Tesla contains plans for the issuing of $750m in convertible debt, as well as $250m in stock to ensure consistent progress and trajectory.
READ MORE: Tesla recruits Apple veteran to lead Autopilot car software programme
In addition to gaining capital for maintaining value and progress, Tesla has also been looking further forward in time to the dawn of autonomous driving. Subsequently the company has made moves such as the recruitment of Apple veteran Chris Lattner as vice president. Lattner had been working at Apple for 11 years and was vice president of its autopilot software
Tesla have also expanded on partnerships with companies such as Panasonic, who is intended to possible provide sensors for Tesla vehicles in the race to secure the highly competitive space based on driverless cars.
