The company said in its shareholder letter in February that it expects "to invest between $2 billion and $2.5 billion in capital expenditures ahead of the start of Model 3 production".
The future of Tesla's profitability will be dictated by the commercial success of the Model 3, which makes the most affordable auto ever offered by this brand its most important product in years.
The $850 million component of the capital raise came from the issuance of convertible notes that would be due in 2022.
While it is hard to tell exactly why Tesla is discontinuing the software-limited version of the Model S, the company has made it clear that the main priority across the company is delivering Model 3 on time, at quality. The electric automaker and sustainable energy company ended up raising 20% more than it planned. According to TechTimes, Musk will be purchasing $25 million of the common stock offered.
To achieve this, Tesla will send the aforementioned instructional videos, as well as the paperwork, ahead of time. Later in the conference call, Musk is heard saying "we will be driving it (the early release candidate) within a week or two".
If the company manages to do what it says, then it will surely provide a much more convenient process for consumers. He promised the Model 3 will have higher initial quality than either the Model S or Model X because of those analytical tools.
"No, it does mean something". Full-scale production is slated to start in September. If an issue comes up, they have weeks to get it resolved.
Now that Tesla cars have officially made their way into Dubai last month, there is already a plan underway to add self-driving versions to the area's taxi fleet.
Tesla said it plans to use proceeds from the stock sales to strengthen its balance sheet and "further reduce any risks associated with the rapid scaling of its business due to the launch of the Model 3, as well as for general corporate purposes". The cells will also be used in the upcoming mass market Model 3 sedan.