Aside from massive battery production, it also builds Model 3 drive units at the desert facility, with plans to move more production for the company's other cars from its plant in Fremont, California, as the new factory expands.
With a major bond offering on the table and Tesla's final test as an automaker rapidly approaching, Musk is surely hoping that any controversy dies down so production can go off without a hitch. Tesla anticipates the addition of Model 3 production this year will eventually lift plant volume to almost 500,000 vehicles a year. The company's "financing model is fragile", tech analysts with Devonshire Research Group said in a research note a year ago about Tesla's increasingly complex business model. The company's market capitalization is $60.87 billion.
Based on the junk status awarded by S&P and Moody's, and the fact that Tesla has put an eight-year maturity frame on the bond, IBTimes UK sources suggest yield on it would be between 5 and 6%.
"We could lower our ratings on Tesla if execution issues related to the Model 3 launch later this year or the ongoing expansion of its Models S and X production lead to significant cost overruns", S&P said in a statement on the bonds.
"As a straight bond investor, it's hard for me to think I really want to do this", said Jack Flaherty, a money manager at GAM Holding who previously bought Tesla convertible debt.
While the plant was shut down a few months ago to install equipment for Model 3 production, the company skipped the "soft tooling" phase that would allow the company to work out production issues with disposable equipment and fine-tune its process. On an earnings call previous year, he said a California factory would soon be an "alien dreadnought" that would efficiently pump out new cars. It's unclear if the driver-facing cabin camera spotted on the Model 3, which Tesla told us wasn't on its other cars, will also be added at some point. "Obviously, that's like the promised land right there".
It was part of a four-day road trip Tesla is taking to bring in high-yield junk-rated bonds needed to build 500,000 new vehicles next year. The company raised about $1.4 billion in March through a stock and debt offering and in June expanded credit agreements by a combined $800 million.
Details about Tesla's shingle-based Solar Roof system have been slow in coming since the company revealed the product a year ago. Over time, there will be more optional systems that will be offered on the Model 3.
Weighing in 400kg lighter than its large sibling, the Model 3 Performance should hit 100km/h in less than 2.3 seconds.
Analysts have scrutinized Tesla's financial in the past.
That may force Uber out of the self-driving semi-truck it had planned to develop when acquiring the Otto startup.
Tesla (NASDAQ TSLA) traded up 0.21% during trading on Tuesday, reaching $366.00.
Information for this article was contributed by Molly Smith, Gabrielle Coppola, Sridhar Natarajan and Nabila Ahmed of Bloomberg News and by The Associated Press.