Musk’s electric-car maker Tesla raised $1.8bn (R24.21bn) in its debut bond sale on Friday, boosting the amount by $300m to meet demand.
The eight-year bonds were priced at a record low yield of 5.3% - a touch higher than initial talk of 5.25%. They’ll help fund the ambitious rollout of the Model 3, the linchpin of Musk’s plans to turn Tesla into a mass-market vehicle maker.
Demand is no problem for Tesla, with almost half a million current reservations, according to Musk. The real hurdle for Tesla’s chief executive officer will be to produce the vehicle on a scale that the carmaker has never come close to achieving before. Musk himself told employees last month, “we’re going to be in production hell”, trying to ramp up output in the second half.
Production hell just got a little more manageable after Friday’s bond sale.