Details elsewhere are scant, but we understand the Model Y will ditch the complex and expensive "Falcon" doors fitted to the £80,000 Model X SUV and should be closer in price and size to the Model 3 saloon. Battery cell production for Tesla's Powerwall and Powerpack started at the Gigafactory in January, while production of Model 3 battery cells began in June.
Earlier in the week, Elon Musk's luxury electric auto maker was expected to raise at least $1.5 billion to accelerate production of its new Model 3, but strong demand allowed the carmaker to raise more, albeit at a slightly higher yield than expected. Musk described the story as "total nonsense".
If the introduction goes as planned, the Model 3 will take Tesla and its sole assembly plant into the realm of high-volume production.
Musk's claim has been reported by green vehicle blog Electrek, which cites two sources involved in a conference call for bondholders. By selling bonds now, Musk can raise cash for Model 3 production without diluting equity holders.
Tesla already has about 500,000 pre-orders for the Model 3.
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He also hit out at Nitish Kumar, upset that he "did not even discuss with us" the decision to partner with the BJP in Bihar. On Wednesday, a close aide of his hinted to PTI news agency that Yadav could form a new party.
Musk hopes to accelerate production cycle time through a combination of plant automation and by designing vehicles for simpler construction - such as the Model 3 and the Model Y.
However, Musk conceded that the biography overall was not entirely flawed, calling it "mostly correct", but saying that the story was "rife with errors and never independently fact-checked" despite his request for that.
So far, Tesla has been raising money to pay its bills with a combination of equity offerings and convertible bonds, which eventually convert into shares. Seeking Alpha calls this deal "singularly unique", in that few companies with the market capitalization of Tesla at $59 billion carry speculative grade debt ratings.
Tesla's cash burn has prompted short-sellers like Greenlight Capital's David Einhorn to bet against the Palo Alto, California company.