Suppliers will have to ramp up production in manpower and equipment to increase parts required from 100000 to 500000 autos. Why would parts manufacturer increase production capacity on Elon folly? The suppliers will have to see the battery and TSLA auto factory completed before increasing production capacity? Suppliers will delay production of model 3 at least another year or 2. .
Besides Elon. Risk reward is so bad. New production manager, and many other leaders are new to TSLA. Do you believe TSLA will meet model 3 production objective?
TSLA will need over $3 billion for current operation and attempt to build a factory to build model 3s. This $2 billion is a drop in the bucket. GS found a lot of suckers today. The next offering will have to be only equity. TSLA will be priced below $100 per share.
TSLA has about $3 billion of bonds due 2018 ($660 million), 2019 ($920 million) and 2021 ($1.4 billion). How would TSLA structure new debt with prior bond commitments. These bonds are the reason Eon Musk announce 500,000 - 1,000,000 model 3 in 2018. New debt may be prohibitive if not impossible. I believe TSLA is a bankrupt company.