Amber Heard And Elon Musk Set The Record Straight On Their Breakup

Amber And Elon

Tesla seeks $1.5 bn junk bond issue to fund Model 3 production

Tesla Inc.'s (NASDAQ:TSLA) CEO Elon Musk has always been a controversial and vocal mouthpiece for the electric vehicle company, often to the detriment of the company's stock.

Tesla shares are up 67 percent this year, pushing the company's market value to about $60 billion, above that of top US automakers General Motors Co and Ford Motor Co, even though Tesla has yet to make an annual profit.

So no matter how stellar its reputation is on the equity markets, Tesla's debut on the bond market would be via junk status - or in simple terms a low quality investment with the enticing offer of a higher yield.

Tesla and Musk seem to be the center of controversy these days. It was 2015 when Musk started talking about plans to increase the aspect of single-charge mileage of all Tesla EVs to 621 miles (1,000 km), which he hoped to achieve not later than 2017, and then to 745 miles (1,200 km) by 2020. As the company seeks funding through a $1.5 billion bond offering, investors are at odds over whether the risk associated with the investment.

Musk's electric auto shop scores a B- rating from Standard & Poor's. S&P rated the bonds negative B and Moody's B3.

If the introduction goes as planned, the Model 3 will take Tesla and its sole assembly plant into the realm of high-volume production.

The publication claims when asked about the current status of their relationship, Elon and Amber 'looked at each other and laughed'.

"It was well-received", said Efraim Levy of CFRA.

At around $35,000, it's hard to make an argument for the Chevy Bolt or BMW i3 over the Model 3. Sharing underpinnings with that auto means the Model Y is likely to have a similar range, which is officially pegged at 220 miles, or 320 miles with the long-range battery pack - although battery technology may have moved on by the time the Model Y launches, bringing with it commensurate increase in range.

Last week, Tesla said that it was planning to spend about $2 billion in capital expenditures during the second half of the year as they ramp up the production of Model 3.

Goldman Sachs acted as left lead, while Morgan Stanley, Bank of America, Citigroup, Deutsche Bank and RBC came in as bookrunners.

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