A Tesla Model S is pictured at the Tesla showroom in Palo Alto, California, U.S., February 20, 2021.
Tesla said it is adding $100,000 to its $40,000 annual loan limit for customers who buy a second-generation Model S from the Palo Alto company.
REUTERS/Robert Galbraith Tesla has raised $40 million from investors, including Goldman Sachs, in a new round of financing that includes $25 million from Sequoia Capital.
Tesla’s funding will help support a long-term investment strategy to develop electric cars that offer consumers a lower price point, Musk said in a statement on Thursday.
The company’s $40 billion valuation includes $20 billion in debt and a net worth of $8.7 billion.
The first Tesla Model has yet to hit the market, and Musk said it will likely be released “at the end of the year.”
Musk said the company will also begin working on a cheaper electric car that could debut later this year.
Tesla has already said it would build a larger sedan, called the Model 3, for a mass-market debut later in 2019.
The latest financing comes after Tesla’s first-quarter profit was less than the analysts’ expectations, and the company has been hit with several lawsuits and investigations.
The automaker is on pace to post a $1.2 billion loss in its first-half, according to a report by Bloomberg.
Tesla said on Wednesday that it is expanding production of its electric vehicles in its Fremont, California factory.
Tesla is currently making around 5,000 cars a month at its Fremons manufacturing facility, which it acquired in 2014.
The new financing will allow Tesla to continue to ramp up production, which has historically been a slow process.