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Tech

Tesla offers $2B in stock to meet Model 3 demand

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Tech

Tesla offers $2B in stock to meet Model 3 demand

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COMING UP:Tesla offers $2B in stock to meet Model 3 demand

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Transcript

00:00:01
>> Tesla's promised to get its most affordable car ever, the Model 3, on the road fast, leaving the company hungry for cash. The company announcing Wednesday it's offering $2 billion of stock to help finance the launch, cash that will be used to ramp up production at its Fremont, California, plant.
00:00:19
Reuters correspondent Alexandria Sage covers the intersection of cars and technology.>> The skeptical view of this is that you cannot ramp up your production so quickly in two years without sacrificing quality, or you sacrifice volume. And it costs a lot of money. People say that even for established carmakers, this would be a difficult feat to increase your production tenfold in the next four years.
00:00:49
>> Wall Street hardly welcomed the news with shares falling. Current investors will see their shares diluted, but many appear willing to stick it out with Tesla. CEO Elon Musk had pledged to turn a profit in 2016, a promise he won't be keeping and now just a memory. There was no mention of it on Tesla's most recent earnings call two weeks ago.