Strong Investor Interest Reported in Tesla’s $1.5 Billion Bond Issue
Elon Musk and his company might be lagging behind in terms of delivering electric vehicles and also reporting losses quarter after quarter, but Musk has been successful in keeping investors and prospective clients interested in whatever he is doing. Tesla Motors reported revenue of $2.79 billion and loss of $1.33 per share for second quarter. Investors are still showing confidence in Elon Musk and his team.
As Musk announced Model 3 and a bond issue raising $1.5 billion, many market analysts were skeptical about the bond issue. However, latest reports suggest that Musk met investors and discussed the bond issue. As per reports, Tesla already has commitment for over 35 percent of its $1.5 billion bond issue.
Tesla bonds have been rated as junk bonds by major credit rating agencies. Junk bonds have high risk and they pay high rate of interest. Tesla is planning expansion to deliver its first mass-market electric vehicle Model 3. Investors are confident that the company will turn profitable as more people get deliveries of their booked vehicles.
Tesla has failed to meet delivery timelines in the past and Musk has acknowledged the issue. Musk has earlier informed investors that the company needs to improve its production capacities to deal with higher demand for its electric vehicles. While other automobile companies are going slow in electric vehicle segment, Tesla has first mover advantage in setting up a strong nationwide chain of super-charging points.
Internet search giant Google has confirmed that it has made a major update to its mobile search results pages to help users decide if a video brought up by the search engine is actually a video that they want to see.
Renowned luxury carmaker Mercedes-Benz used the Monterey Car Week to introduce the world to its latest concept car -- the Vision Mercedes-Maybach 6 Cabriolet.
Google’s live TV streaming service “YouTube TV” is now available in 14 more cities in the United States. Combined with the fifteen cities already served, nearly 50 per cent of the American households can now subscribe to the service.
Elon Musk’s Tesla Motors has announced that it will occasionally roll out over-the-air software updates to offer slight tweaks and adding a few new features to existing functions.
Luxury car giant BMW new Z4 is said to be a reincarnation of the first Z3 roadster that was produced at the company’s Spartanburg, South Carolina-based manufacturing facility in the mid 1990s.
Seeking to catch up to Tesla and other rivals, South Korean automaker Hyundai Motor Company has decided to place electric vehicles at the center of its product strategy.