Southfield, Michigan — Tesla is selling bonds to bolster its balance sheet and support spending on the Model 3 sedan. The company plans to offer $1.5bn in senior, unsecured notes due in 2025, according to a statement. Tesla said it intends to put the proceeds towards scaling up for its most affordable model yet and for general corporate purposes. Tesla burned through a record $1.16bn in cash in the second quarter, driven by spending on capacity for the Model 3 and boosting battery output. The Model 3 starts at $35,000, roughly half the cost of the base Model S sedan, and has racked up almost half a million net reservations since the company began taking refundable deposits last year. The Model 3 is the linchpin of CEO Elon Musk’s plans to turn Tesla into more of a mass-market manufacturer. The car maker plans to make 500,000 vehicles in 2018, then a million in 2020. The company produced almost 84,000 cars and SUVs last year. Bloomberg
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