Tesla has managed to come up with the needed funds for the Tesla Model 3's production to begin, as $300 million worth of credit lines were given by the Deutsche Bank to the Palo Alto electric vehicle company this week. This comes with the condition to return the funds by August 31, 2017, or prolong the time until September 2018, in which case Tesla will have to pay 2% more in interest.
With this, Tesla breaks all doubts made by financial analysts all over the world that they cant have enough money to make the initial 400,000 orders of the Tesla Model 3.
Tesla Model 3 Is Tesla's Kryptonite
When Tesla introduced the Model 3 as the "low cost" electric vehicle that people can buy for around $50,000 - much less than other Tesla vehicles like the Model S and Model X - it was dubbed that it will be the car to end Tesla's success.
This is because Tesla needs liquidity to make the car without losing any money on the road. The question is how, as Tesla still does not have large production models yet, and there were doubts that its facilities would have difficulty in delivering the 400,000 initial orders of the Tesla Model 3. Thus, the $300 million credit is good news for both the carmaker and consumers alike.
According to information published a few days ago by Agencia EFE, Tesla explained that it needs to obtain funds to finance the development of the Model 3 and the construction of its large battery factory. Luckily, the much-needed economic boost has come from the hand of Deutsche Bank.
The Tesla Model 3 Madness
The craze for the Tesla Model 3 began at the time of its announcement. As if it were the presentation of a new iPhone, people went crazy to meet Elon Musk that night and 133,000 orders were formalized in the same day. A few days had passed and people are even putting $1,000 deposits just to reserve their Tesla Model 3.
More amazing is the figure Tesla will get if finally all orders are delivered: in just one day, they can sell cars worth billions of dollars. A feat no other car brand had done before. And a success that could lead to more power to the company's CEO, Elon Musk.
Could Tesla Model 3 be Tesla's kryptonite or Tesla's most priced possession? Only time can tell.
Meanwhile,let's thank the Deutsche Bank and savour the great Model 3 with a flashback of its unveiling. Check out the video below.
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