EPA Reveals How the Tesla Model 3 Gets 310 Miles of Range

Amber Heard and Elon Musk on the Gold Coast in April

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Actually, that makes ideal sense since it was believed that everyone who got their new EVs already was a Tesla Inc. employee, which means they were bound by contract to keep quiet about the Model 3 until every possible issue had been ironed out.

The long-range Model 3, meanwhile, comes with a hefty price premium over the regular Model 3. They're citing language that exempts Gigafactory 1 from the usual curbs that would prevent Tesla from using the factory as collateral for even more debt. The announcement conjured up a fantastical vision of Musk flipping a switch to suddenly transform all of the Tesla vehicles on the road into self-driving robots.

Given the strong name recognition of founder Elon Musk and the stellar performance of Tesla's stock - up 67% this year - the deal certainly had no problem drawing attention. This measurable risk of default is one of the reasons why Tesla's bond offering is, by definition, a junk bond. You can call it a view of the future or blind optimism, but we call it a shared mission. Tesla wants to make the Model Y a smaller SUV than the hideously ungainly Model X. It also wants to make it a more affordable SUV option, similar to the Model 3. It's a tech company with industrial assets growing 50% to 100% per year. The curb weight on the Model S is ~4,600 - 4,750 pounds for the 85kWh variants and rises to 4,960 pounds for the P100D with its larger battery. At this early stage of expansion, a company like Tesla should be funded with equity, Holman said. If Tesla grows its capital (cash) base faster than its asset base, it's not cost efficient.

That made it all the more surprising that Tesla would be able to raise more money than expected and at such a reasonable yield for a company with a risky balance sheet.

Tesla is counting on the Model 3, its least pricey auto, to become a profitable, high-volume manufacturer of electric cars. Musk offhandedly dismissed concerns about Tesla Model 3 cancellations - orders now stand at about 455,000 compared to Musk's proclamations to the press of about 513,000 preorders - as inconsequential and that original numbers were "just a guess".

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