Tesla Motors said it would sell $2 billion in stock to finance the launch of its new Model 3 electric sedan.

Tesla Motors said it would sell $2 billion in stock to help finance the accelerated launch of its new Model 3 electric sedan. The company's shares were down 1.8 percent at $207.30 following the news after markets closed on Wednesday.

Tesla CEO Elon Musk surprised investors last month with his decision to speed up the introduction of the Model 3, a smaller, less expensive car than Tesla has built, and expand production capacity at the Tesla plant in Fremont, California.

As part of the sale, Tesla said it would offer about $1.4 billion of shares, with the remaining shares to be sold by Musk to cover taxes connected with his exercise of more than 5.5 million stock options.

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USA - Tesla's advance orders for the new Model3, top 253,000 in 36 hours, thats about $10.6 Billion A.S.P.

Tesla Motors Inc. said orders for the new Model 3 electric sedan topped 253,000 in the first 36 hours -- a fast start for the company's first mass-market vehicle, which may not begin to reach customers for another 18 months or more.

Tesla CEO Elon Musk tweeted on Friday that the Model 3, which is slated to go into production in late 2017, will sell at an average price of $42,000, including the price of options and additional features, which in theory would give the initial flurry of orders an estimated retail value of $10.6 billion.

The intense interest in the Model 3, fanned in part by a steady stream of tweets by Musk, could help boost Tesla's stock price, which closed Friday at $237.59, up 3.4 percent. The stock has soared more than 60 percent since hitting a 12-month low in February.

The car's average selling price projected by Musk is well above the $35,000 base price. Analysts earlier had estimated the first Model 3s off the factory line in Fremont, Calif., could be loaded with extra equipment and sell for $50,000 to $60,000.

Tesla has undertaken a costly expansion of the Fremont plant, aiming to boost annual capacity to 500,000 by 2020, with production of the Model 3, the company's first mass-market car, ramping up slowly through 2019.

Some analysts said the company could have trouble filling all the initial Model 3 orders, which are accompanied by a refundable $1,000 deposit, until 2020.

Barclays analyst Brian Johnson on Friday said the heavy influx of Model 3 orders "sets the stage for an equity offering" later this year by Tesla, much of which would go toward factory construction and product development.

Johnson had estimated Tesla could take 250,000-300,000 orders for the car by the end of June.

Musk unveiled a prototype of the Model 3, a smaller companion to the Model S sedan and Model X utility vehicle, amid considerable fanfare on Thursday night.

Some prospective buyers who placed early orders may have anticipated paying a lower price for the Model 3 after factoring in a $7,500 federal tax credit on EVs. But that credit begins to phase out once manufacturers sell more than 200,000 EVs -- a mark that Tesla, at its current sales pace, is likely to surpass next year before the first Model 3 is delivered. 

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The All New Tesla3, the small Tesla for the masses, and the masses have been putting in their orders.

Suggesting there may be significant pent-up demand for an affordable electric car with decent range, Tesla Motors revealed the design of its $35,000-and-up Model 3 during a invitation-only event late Thursday.

The unveiling took place after a day of anticipation during which thousands of people waited in line at Tesla showrooms to place $1,000 deposits on the car, sight unseen.

More than 115,000 people made reservations for the Model 3 within the past 24 hours, Tesla CEO Elon Musk said at Tesla’s design studio in Hawthorne, Calif., as he revealed the Model 3, with an aerodynamic, genre-bending design somewhere between sedan and hatchback and a huge, tablet-like screen between the front seats.

As of early afternoon, advanced orders reached 198,000, Musk said in a post on Twitter.

"Definitely going to need to rethink production planning," Musk wrote.

Tesla shares surged 3.4 percent to close at $237.59 today. 

Musk said the Model 3 will seat five adults in comfort and will have a minimum range of 215 miles and a 0-to-60 time under 6 seconds in its cheapest iteration when it goes on sale at the end of 2017.

“I do feel fairly confident it will be next year,” Musk said to knowing laughter, given Tesla’s track record of delays on its current products, the Model S sedan and Model X crossover. “As for price, it’ll be $35,000. And I want to emphasize that even if you buy it at $35,000 -- no options at all -- this will still be an amazing car.”

No slow cars

Despite the months of intense hype for the Model 3’s unveiling, Tesla disclosed precious few details on pricing or content, saying it would share more information to launch. Musk did say the Model 3 would come standard with hardware for Tesla’s Autopilot system and the ability to use Tesla’s network of proprietary Superchargers.

He also signaled that Tesla would offer “much faster” versions of the Model 3.

“At Tesla,” he said, “we don’t make slow cars.”

Despite the dearth of details, the surge of reservations for the Model 3, intended to become Tesla’s first mass-market model since its founding in 2003, marks a pivotal moment for the company and for electric cars.

Palo Alto, Calif.-based Tesla sees sales volume from the Model 3 as key to its long-term success. From the moment it goes on sale, the Model 3 will face stiff competition from conventional automakers, including General Motors’ Chevrolet Bolt, which is now in the early stages of pre-production and is scheduled to go on sale by the end of the year with a range of roughly 200 miles on a full charge.

Early orders

Orders for the Model 3 started Thursday morning, as Tesla gave U.S. customers the chance to submit a $1,000 refundable deposit at a Tesla store to begin the waiting period. Owners of the Model S sedan or Model X SUV were given one priority reservation per vehicle they owned, putting them ahead of first-time buyers in the delivery queue. Tesla also gave priority reservations to its employees and those of SpaceX.

Lines formed at many of Tesla’s factory-owned showrooms, with some of the lines snaking around the block, according to postings on social media. At one point during the day, a broadly grinning Musk visited Tesla’s showroom at a shopping mall in Century City, Calif., giving high fives to every customer waiting in line, a video posted online shows. (He declined requests for photographs, saying he was pressed for time.)

Tesla plans to start assembling the Model 3 in late 2017 at the Fremont, Calif., factory where it builds the Model S and Model X. Deliveries would begin in California and move eastward across the United States, then to Europe and to right-hand drive markets.

Missed deadlines

Many people, including some of Tesla’s staunchest fans, remain skeptical that the company will hit its deadline, as Tesla has never set a production deadline it didn’t miss. So far, this has not been a problem, as Tesla’s base of fiercely loyal customers have been willing to wait and have forgiven early quality glitches. Mass-market customers may not be so forgiving, said Patrick Min, a senior analyst at TrueCar.

“This is a pretty big test for them in terms of … pushing the vehicle out at this level,” Min said.

By moving down-market, Tesla opens itself up to car-buyers who previously were priced out of the company’s showrooms. But despite the headline-grabbing entry price of $35,000, analysts do not expect many customers to pay so little for a Model 3.

“Virtually no one will buy that specific car,” David Whiston, an auto analyst at Morningstar, told Automotive News before Thursday's unveiling. He predicted that an eager base of early adopters will push the Model 3’s average transaction price into the $40,000s or beyond. “This is not really the mass market car that some people are referring to it as.”

Whiston said Tesla may need an even cheaper car than the Model 3 to reach its stated production goal of 500,000 vehicles annually by 2020, nearly 10 times the 50,580 it delivered in 2015. Tesla, which has never turned a yearly profit and reported $320 million in net losses for the fourth quarter of 2015, has also said that it needs the volume of the Model 3 to be viable in the long term.

“If you really want to start getting into the volume segments, you’re going to need cheaper cars than what they sell today -- and even cheaper than the Model 3,” Whiston said. “That’s the big question for this company: can they ever get the scale to survive?”

Tax incentives

Tesla has said the $35,000 price is before federal and state tax credits. Once on sale, the Model 3 may push Tesla past a threshold for federal tax incentives, which have helped to spur sales of electric cars such as the Model S. Once an automaker sells more than 200,000 electric vehicles in the United States, that company’s vehicles soon become ineligible for the credit, which is worth up to $7,500.

With the threshold passed, Tesla’s credits will be phased out over a one-year period. Two quarters after the 200,000 mark is reached, the credit will be cut in half for the following two quarters. Then the credit will be cut in half again for one more quarter before being phased out entirely.

Tesla, which does not break out sales by country, has not disclosed how close it is to the 200,000 mark, but the automaker is expected to pass the threshold as soon as 2018, meaning that the customers who place a deposit on the Model 3 have no guarantee that credits will be available when deliveries begin.

Many people remain skeptical that Tesla will hits its goal of delivering the car in late 2017, given that the Model X went on sale in late 2015, two years later than Tesla initially promised.

Musk has admitted that at least some of the delays on that vehicle were tied to overly ambitious design elements such as upward-opening falcon-wing doors and sliding second-row seats.

Few of those gee-whiz elements are apparent in the Model 3’s design, aside from a panoramic glass roof and the decision to move the front seats unusually far forward for more space.

Like the Model S and Model X predecessors, the Model 3 has a slippery design to cheat the wind. Built from scratch on a new platform, it will provide the underpinnings for additional models including a small crossover.

Gabe Nelson

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CAP Black Book announces that the Tesla Model S holds it's value better than any other car.

Comes with a luxury price tag but holds its value better than any other car, says CAP’s Jeff Knight

Although the Tesla comes with a £60,000 starting price, Jeff Knight at CAP says the Tesla holds its value better than almost any other modern car on the market today. According to the motor industry’s CAP Black Book, the Tesla is the green motoring choice for the serious car buyer with a decent budget and a passion for investing in the latest electric vehicle technology.

“The Tesla is still, relatively, rare in the UK and most are bought new by passionate enthusiasts or business fleet buyers,” explains Jeff Knight at CAP. “This means that secondhand examples tend to be fitted with between £10,000-20,000 worth of optional equipment. This helps the Tesla hold its value on the used car market. At Black Book, we have held Tesla values static for a year now, which is highly unusual.”

Even though it’s a full electric vehicle, owners seem happy to make the switch from a fuel vehicle to Tesla. The Model S Tesla has a range of between 200 to around 265 miles, depending on the battery option of the vehicle and the nature of the drive. When it comes to charging, owners can opt to use a domestic supply or invest in an industrial charging installation at their home, partly subsidised by Tesla.

Tesla owners benefit from a growing network of UK supercharger points (currently 29) which work at the rate of 68 miles per hour of charge. These will take the car up to 80% charged in 40 minutes and 100% in 75 minutes, keeping drivers on the road.

Jeff Knight continues, “Many Tesla owners alter their lifestyle to fit the charging regime, because they are that passionate about the benefits of their vehicle. In the US, it’s not unusual for owners to call at the supercharger on the way home and sit in the car, using the free Wi-Fi to send emails as the car charges.

“People, clearly, love this vehicle, which means it holds its value. For anyone looking to buy an executive car with green credentials, but can handle the charging regime, a Tesla is one of the smartest investments in today’s market.”

Tesla gets through $359 Million in the last quarter, but with two new cars coming it's only to be expected.

It's crunch time for Tesla Motors.

The Silicon Valley automaker is losing more than $4,000 on every Model S electric sedan it sells, using its reckoning of operating losses, and it burned $359 million in cash last quarter in a bull market for luxury vehicles. The company on Wednesday cut its production targets for this year and next.

CEO Elon Musk said he's considering options to raise more capital, and didn't rule out selling more stock.

Musk has taken investors on a thrill ride since taking Tesla public in 2010. Now he's given himself a deadline, promising that by the first quarter of 2016 Tesla will be making enough money to fund a jump from making one expensive, low volume car to mass producing multiple models, and expanding a venture to manufacture electric power storage systems.

Tesla's shares fell almost 9 percent on Thursday and slipped another 2 percent on Friday as investors and analysts weighed the risks of Musk's ambitious plans for expanding Tesla's auto and energy storage businesses. Tesla had just $1.15 billion on hand as of June 30, down from $2.67 billion a year earlier.

Automakers consume cash to pay for assembly line equipment, including metal dies and plastic molds, as well as testing to meet safety and emissions standards. A typical new car can cost $1 billion or more to engineer and bring to market.

Established automakers such as General Motors and Ford Motor Co. have amassed far larger cash cushions as they've rebuilt balance sheets battered by the 2008-2009 recession. GM, restructured six years ago in a government funded bankruptcy, has targeted cash reserves of $20 billion and had more than $28 billion in cash equivalents as of June 30.

To be sure, GM sells more than 9 million vehicles a year, while Tesla plans to build between 50,000 and 55,000 cars this year. Tesla, most of whose cars are built to order directly, delivered 11,532 cars in the second period and said it had an operating loss of about $47 million, for an operating loss per car of about $4,000.

Tesla's narrower margin for error is just one more way in which it is different from its century-old rivals.

Capital spending

The company said it plans $1.5 billion in capital spending this year, mainly to launch its Model X, battery powered SUV with eye-catching, vertical-opening "falcon wing" doors. Tesla reported $831 million in capital spending during the first half of the year, indicating it will spend roughly another $700 million.

During the second quarter, Tesla said operating costs and r&d spending rose, while average selling prices for the Model S lineup, which starts at $70,000 before federal and state electric vehicle tax breaks, fell 1 percent as the mix of sales shifted to less expensive models and a strong dollar hit revenue generated overseas. The Model S comes in several different versions, ranging in price up to $106,000 or more, depending on options.

Tesla has signaled capital spending will drop next year because the company won't be spending on a major vehicle launch. In 2017, Tesla plans to launch its Model 3 line, which the company says will start at about $35,000 and push total sales toward the goal of 500,000 vehicles a year by 2020.

Barclays analyst Brian Johnson disagreed with the company's estimates, and said he expects Tesla's capital spending will go up in 2016 and 2017 as the company ramps up its battery factory and Model 3 development. "Their small scale means the cash generation is not as great as they might have hoped for," he said.

Worth more than FCA

Musk said this week Tesla expects to have $1 billion in cash over the next year, and told analysts "there may be some value" in raising capital "as a risk reduction measure."

Tesla's stock is still about 70 percent higher than it was two years ago, and 8 percent ahead of its level on Jan 1. With a market capitalization of $31 billion, Tesla is worth more than Fiat Chrysler Automobiles NV, the much larger maker of Ram pickups and Jeep Grand Cherokees.

"A capital raise, given the way they're burning cash today, given the fact that they have future investment needs, seems very likely at some point," said UBS Securities analyst Colin Langan, who has a sell rating on the stock.

Musk has steered Tesla out of tight corners before. In September 2012, the company faced a cash crunch, but raised money by selling shares and renegotiating the terms of a federal loan. The Model S started production in mid-2012.

Tesla has made moves to expand sales volume, and lure people to pay more for its vehicles. In addition to adding a lower priced version of the Model S, Tesla last month said it would offer performance upgrades for its Model S 85 and 85D for $5,000 and launched the Model S 90D and P90D high performance cars at a $10,000 price premium.

GAAP numbers

Tesla reports its finances in a different way from the Detroit automakers. Using the generally accepted accounting principles, or GAAP, used by GM or Ford, Tesla's operating losses per vehicle have steadily widened to $14,758 from $3,794 in the second quarter of 2014.

But Tesla points out in its statements to investors that its GAAP accounting excludes certain revenue and profits from Model S sedans that customers lease.

In the second quarter, the deferred gross profits from Model S leases amounted to $61.9 million, Tesla said. Analysts say they add back the deferred revenue to make Tesla's figures more comparable to the reporting used by other automakers.

Tesla owners drive the equivalent of 40,000 trips around the Earth, emission-free

Tesla, manufacturer of the award-winning Model S all-electric saloon, is today announcing its total vehicle fleet worldwide have driven over a billion miles. In just the three years since Model S hit the road, owners across the world have travelled the equivalent of over 4,000 trips to the moon, or almost 40,000 times around the Earth. By driving electric miles, Tesla owners have saved more than half a million tons of CO₂.

This month, Model S celebrated its first anniversary in the UK. Despite their recent starting point, British Model S drivers have covered 6.6 million miles which is the equivalent of over 265 times around the world and over 27 trips to the moon.

A billion miles on a fleet of just under 75,000 Model S is a testament to the safety and durability of Model S and the ease of charging and driving electric vehicles. Tesla customers rely on Model S as their daily driver and for long distance road trips by charging at home or along Tesla’s worldwide Supercharger network.

Since the launch of Model S in 2012, Tesla has created a charging network spanning North America, Europe and Asia that now consists of 445 Supercharger stations and thousands of Destination Charging locations, enabling fast and free long distance charging.  

Most importantly, Model S owners can be confident that they are driving the safest car on the road thanks to Tesla’s Autopilot capabilities, a low centre of gravity and a maximum possible 5-star Euro NCAP safety rating.

Tesla will kick off this fleet milestone with the launch of the Next Billion Miles Tour which will travel around North America, Europe and Asia offering customers the opportunity to experience the exhilarating performance and handling of Model S.

The Next Billion Miles Tour will visit a number of locations in the UK. To sign up for a test drive on the tour, visit 

http://www.teslamotors.com/en_GB/billionmiles

To see how our British Model S owners have contributed their part in the 1 billion miles milestone, read their stories here:

Owners Tony and Jenny regularly travel abroad with their Model S; “For every day and long distance driving and ownership experience, the Tesla takes first prize every time. We’ve driven it down to the French Alps three times, and toured Scotland, Wales and Cornwall.”

Tom has made several trips to France in his Model S with his family; “We’ve now completed three trips to Europe in our Model S, totalling about 3,000 miles; we’ve driven to Cannes, Brussels and most recently Paris. The Model S is a brilliant touring car.”

Brian Gilmore and his family rediscovered the road trip thanks to their Model S; “We drive it most days but it really comes into its own on long road trips.”

Elon Musk urges Texas to play fair with Tesla car sales, and offers future facilities in the state.

Tesla Motors Inc. CEO Elon Musk urged Texas lawmakers on Thursday to ease restrictions on sales of the company's electric luxury cars as he floated the prospect of locating a new car factory or a test facility for his "hyperloop" mass transit concept in the state.

Texas is one of several states that have barred, or strictly limited, Tesla's ability to sell cars directly to consumers through company-owned stores.

Owners of franchised car dealerships in several states have lobbied to block Tesla's direct sales operations on grounds that they violate laws designed to protect auto retail franchises from competition from auto manufacturers.

Musk has fought to overturn the restrictions, and told an audience at a transportation seminar in Austin that the current franchise laws are "un-Texan."

"All I want to do is give the people in Texas the right to choose how they buy their cars," he said.

Musk said Texas could be a contender for future Tesla car or battery factories, and said he is considering building a test facility for his concept of a "hyperloop" rapid transit system in the Lone Star state. Musk's SpaceX space transport company already has a rocket development facility in the state.

A Tesla spokesman said Musk's comments about the factory and the hyperloop test track were part of a "wide-ranging discussion in Austin, Texas about Texas matters," and not an attempt to link those potential investments to a resolution of the dealership matter. Musk did plan to speak with lawmakers about the franchise issue, the spokesman said.

Musk's concept of a hyperloop would be an alternative to air travel or high speed trains for travel between cities several hundreds of miles apart.

The idea, sketched out in an August 2013 paper, is that people would be whisked from city to city in pods that traveled through steel tubes, propelled by differences in air pressure. The pods would ride on a cushion of air, Musk wrote, and use electric compressors mounted in the nose to push air from the front to back, propelling the pod forward.

On his Twitter account Thursday, Musk posted: "Will be building a Hyperloop test track for companies and student teams to test out their pods. Most likely in Texas."

Tesla shares have been sliding in recent days, and dipped again on Thursday, losing 0.4 percent to close at $191.87. The share's 52-week range is $162.40 to $291.42.

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Tesla Model S and Elon Musk to showcase cars in the UK, following successful launch event.

First RHD customer deliveries in the world presented by Tesla CEO Elon Musk

Tesla CEO Elon Musk delivered five new cars to customers in London on Saturday at an event to welcome the arrival of right hand drive (RHD) Model S in the UK. The occasion marks the beginning of a planned rapid expansion in the country in the coming two years.

Today, Tesla operates a store in Westfield White City and a service centre in West London. By the end of 2014, however, customers will be able to visit Tesla stores and service centres across the UK. Tesla will also continue to hold test-drive events around the country.

RHD MODEL S IN THE UK

Model S is an uncompromised electric car that delivers 312 miles of NEDC range on a single charge. With a17-inch touchscreen, an outstanding safety record, and an acceleration of 0-60mph in 4.2 seconds, the fully electric Model S breaks the mould. The car and the company have received numerous accolades, includingAutocar magazine’s Sturmey Award for Automotive Excellence and Telegraph Motoring’s Best Eco Car, voted for by readers. Top Gear Magazine called the Model S “the most important car Top Gear (Magazine) has tested.”

Tesla is committed to giving customers the best possible Model S experience no matter where they live. With that in mind, the company has completed a country-specific validation programme to ensure the vehicles are optimised for every market in which they are sold. Right hand drive cars in the UK come with software specific to the country and a configuration that fits the needs of owners who drive on the left hand side of the road. Everything from the wipers to the braces in the front trunk have been re-fitted for RHD. 

The arrival of RHD Model S is accompanied by the Model S iPhone app, available in the UK iTunes store. The app puts Model S owners in direct communication with their cars anytime, anywhere. Owners can use the app to check on charging progress, start or stop charging, and heat up or cool down Model S before driving (even if it's in a garage).

In the UK, prices for the Model S start at £50,280 on the road, including the £5,000 government plug-in grant. UK Model S customers can also benefit from other government incentives, including zero road tax, zero showroom tax, and exemption from London Congestion Charge. The car is also eligible for the 100 percent First Year Allowance for company purchase and 0 percent Benefit in Kind, both of which last until April 2015.

FIRST UK SUPERCHARGER

Tesla also energised the first Supercharger location in the UK at the delivery event. The Crystal site at London’s Royal Victoria Docks represents the beginning of a route to Paris and then the rest of Europe, which will enable Model S drivers to travel long distances in the UK and on the continent for free.

“Superchargers enable long distance travel but also, in a city where off street parking is rare and expensive, Model S customers will be able to access a network of Superchargers across London to charge, quickly and for free, at their convenience,” said Elon Musk. “We are looking at locations across the capital to place our first set of inner city Superchargers. Our plan for routes to other cities in the UK is still on target for the end of the year, but we are also announcing this new initiative in order to best serve our London-based customers. We expect customers to be able to travel the length of the UK and Ireland for free using our Superchargers within the next 18 months”

Musk said that by the end of the year Model S drivers will be able to travel almost anywhere in Europe using Superchargers. The company is energising Superchargers at a rate of close to one per weekday. 116 Supercharger locations are energised worldwide including 19 locations in Europe. Tesla Superchargers have so far offset more than 2.5 million litres of petrol.

The Tesla Supercharger is one of the most powerful charging technologies available in the world today, providing up to 120 kilowatts of direct current to the Model S battery. Superchargers replenish half a charge in as little as 20 minutes and are strategically placed along well-travelled highways to allow Model S owners to drive from station to station with the fewest possible stops. Superchargers are located near amenities like restaurants, cafes, and shopping centres so drivers can stop for a quick meal and have their Model S charged at the same time.

Forward-Looking Statements

Certain statements in this press release, including statements regarding future store, service centre and Supercharger locations and capabilities as well as statements regarding sales expectations in Europe, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. Various important factors could cause actual results to differ materially from those in the forward-looking statements, including potential difficulties in finding suitable store, service centre and Supercharger sites, negotiating leases or obtaining required permits for such locations and customer acceptance of our brand and vehicles in Europe and Asia, as well as the risks and uncertainties identified under the sections captioned “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results Of Operations” in Tesla’s Form 10-K filed on February 26, 2014. Tesla disclaims any obligation to update information contained in these forward-looking statements.