Tesla looking to raise $1.5bn to boost Model 3 production

Tesla is looking to raise about $1.5 billion in bond offerings as the electric car manufacturer ramps up the production of its Model 3 sedan.

"We plan to offer senior notes due in 2025 and would use the offering's proceeds to further strengthen our balance sheet during rapid scaling of the Model 3," the company said in a statement.

Two weeks back, when Tesla delivered the first 30 Model 3s to employees, Elon Musk said that the company would face "at least six months of manufacturing hell" as it increases production of the Model 3, worrying few investors. He, however, assured them saying that there should be 'zero concerns' about whether Tesla will be able to meet targets or not.

Tesla had over $3 billion in hand at the end of June quarter compared with $4 billion at the end of the previous quarter and $3.25 billion a year earlier. But, Tesla is burning through cash at a rapid rate. The company spent $1.2 billion in the second quarter preparing for the Model 3's arrival.

Elon Musk led Tesla is banking on Model 3, its least pricey car- $35,000 starting price- to bring hundreds of thousands of customers into its fold taking it from a niche luxury brand to the mainstream.

Tesla market shares are up 67 percent this year, pushing the company's market value to about $60 billion, above that of top US automakers General Motors and Ford.