Tesla to raise $783 million with sale of prime auto leases: Bloomberg

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Tesla is set to raise additional funding by selling debt backed by automotive leases, and a report says that the debt sale could price as soon as next week.

On Thursday, Bloomberg reported that Tesla is already pre-marketing a $783 million debt sale backed by leases from prime borrowers, citing a person familiar with the matter who asked to remain anonymous. The sale is reportedly being led by French firm Societe Generale, and it’s expected to be officially priced next week.

Bloomberg also explains that Tesla priced a $750 million ABS deal with a 5.53 percent coupon on its top tranche.

Asset-backed security (ABS) sales are increasingly common with automakers, and this particular debt sale would be Tesla’s second such transaction this year. This deal lets Tesla access liquid finances without taking on other debts that could otherwise cost the company more.

Why Tesla CIO’s exit might be a good sign for Robotaxi: Opinion 

Last year, Tesla securitizations totaled around $4 billion, though the company hasn’t utilized securitizations quite as often as many legacy automakers. Ford, for example, priced a $1.7 billion deal just on Thursday.

The news also comes ahead of Tesla’s Robotaxi unveiling event on Thursday, dubbed “We, Robot,” which many expect to be a pivotal moment for the company. Tesla has been teasing a Robotaxi platform based on its camera-based Full Self-Driving (FSD) software for years, and the company earlier this year highlighted early looks at a ride-hailing Robotaxi platform.

Tesla will also hold its Q3 earnings call on October 23, though the company already reported delivering 462,890 vehicles in the third quarter earlier this week. The company also said it deployed 6.9 GWh of its Megapack and Powerwall energy storage products, meaning that Tesla has also surpassed its full-year 2023 energy deployments with another full quarter to go.

You can follow along with Tesla’s upcoming Q3 earnings report at the company’s Investor Relations site here.

Tesla’s ‘big week’ set to get automaker back on track with big picture story: firm

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Tesla to raise $783 million with sale of prime auto leases: Bloomberg





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Tesla set for ‘pivotal’ moment that marks ‘new chapter’ in company’s history

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Tesla Robotaxi Day is set to be the company’s “pivotal” moment that will launch a “new chapter” in the story of the world’s most valuable automaker.

Wedbush analyst Dan Ives says Tesla’s upcoming event, which is now less than a week away, is one that will be pivotal and change the outlook for the company.

No longer will analysts look at just deliveries and production figures and an expanding lineup for bullish sentiments.

Now, there will be more focus on self-driving, something Tesla investors have long been waiting for the market to recognize as one of the company’s biggest strengths.

Ives says Wedbush is expecting “key updates around the company’s projections on Cybercab scaling, overall cost per mile, a Tesla ride-share app, and a Generation 1 demo on the premises of the breakthrough technology designed to revolutionize transportation.”

Tesla expected to unveil ‘game changing’ autonomous tech next week: Wedbush

If Tesla comes through on these things, it will make for an event that can widely be considered a success.

Although expectations are relatively tempered, and some are even expecting a more technical event, it is still likely that enough will be revealed that investors should be encouraged.

Ives said in his note to investors on Friday morning:

“We believe this is a pivotal time for Tesla as the company prepares to release its years of Robotaxi R&D shadowed behind the curtains while Musk & Co. lay out the company’s vision for the future. We remain confident in the Tesla story, which has proven successful many times over the years, and we look forward to this long-awaited event as the next evolution of transportation unfolds. There are clearly a number of hurdles and questions the industry/investors want to hear about, including insurance, cost of the vehicle, timing, regulatory approval timeline, and overall operations, among other issues.”

What value Tesla can bring shareholders is another looming question of the Robotaxi event. Wedbush says it is still under the firm belief that autonomy, AI, and Full Self-Driving (FSD) are Tesla’s true path to a $1 trillion value, and this is without any other portions of its business.

Factor in an energy business that has reported two quarters that are outliers compared to past ones, with Q2 seeing the biggest deployment in company history and Q3 being lower but still outpacing other quarters by a long time, and Tesla is looking truly strong.

Tesla bull makes bold claim, says three cars will be unveiled at Robotaxi event

The only true concern among investors could potentially be when they will see growth annually.

Tesla is on pace to match what it delivered in 2023, and although it was transparent that things will slow down as it focuses on the next-gen platform, people will be anticipating 2 million annual deliveries and subsequent growth starting in 2025 or 2026.

Wedbush maintained its ‘Outperform’ rating and a $300 price target.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla set for ‘pivotal’ moment that marks ‘new chapter’ in company’s history





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Tesla starts sending Cybertruck Non-Foundation Series order invites

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Tesla has started sending out invitations to order the non-Foundation Series Cybertruck, which starts at $79,990 before options. While Tesla’s order page for the Cybertruck as of writing is still displaying the Foundation Series variant as of writing, the start of production for the all-electric pickup truck’s standard variants seems poised to start soon. 

The Foundation Series added $20,000 to the Cybertruck’s base price, which means that the Cybertruck All Wheel Drive (AWD), which starts at $79,990 before options, became a $99,990 vehicle, and the tri-motor Cyberbeast, which starts at $99,990, became a $119,990 all-electric pickup truck. The Foundation Series added a lot of extras and perks, but it did raise the entry price for buyers.

As could be seen in screenshots and videos that have been shared on social media platforms like X and forums like the Cybertruck Owners Club, the removal of the Foundation Series now enables customers to order the all-electric pickup truck without any extras. Thus, if a customer opts for a Cybertruck AWD with Core Wheels and Covers, Tactical Grey Decor, no Full Self-Driving (FSD), and no accessories, they could acquire the vehicle for $79,990 before taxes and fees. 

Tesla has not indicated if the Cybertruck AWD qualifies for the U.S. federal tax credit. Screenshots that were posted online also indicate that non-Foundation Series Cybertruck deliveries are estimated to start in October to November 2024. Interestingly enough, the range of the standard Cybertruck AWD is listed at 325 miles per charge, lower than the 340-mile Foundation Series Cybertruck AWD.

As observed by some members of the Tesla community, if customers order a standard Cybertruck with all the options that came with a Foundation Series vehicle, the difference in price becomes quite minimal. FSD, for example, costs $7,000 for early reservation holders ($8,000 for new orders), the Cyber Wheels and Covers cost $3,500, and the White Interior Color costs $2,000. 

Add in the $2,500 Tesla Shop voucher, 3D All-Weather Interior Liners, Gear Locker Dividers, Glass Roof Sunshade, D-Rings, L-Track Hooks, L-Track Bottle Opener, Center Console Tray, Powershare Home Backup capability, Powershare Mobile Connector, lifetime Premium Connectivity, and Off-Road Light Bar for the Cyberbeast that came with the Foundation Series, and it all comes to about a $3,000 premium or less for early adopters. Considering these savings, some customers have noted that the Foundation Series premium was worth it. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Tesla starts sending Cybertruck Non-Foundation Series order invites





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