Tesla is to offer US$1.5bn in corporate bonds to strengthen its balance sheet as it looks to ramp-up production volumes on the Model 3.
Tesla plans to offer US$1.5 billion in senior unsecured notes due in 2025, according to a statement.
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Bloomberg said it would be the company's first sale of non-convertible bonds, according to data it compiles.
Bloomberg noted that bringing out the Model 3 has been costly. Tesla burned through a record $1.16 billion in cash in the second quarter, driven by spending on production capacity for the car and batteries.
Tesla plans to make 500,000 vehicles in 2018 and a million in 2020.
Bloomberg reported that Musk said on a quarterly earnings conference call last week that the company was considering raising debt.
Tesla said last week it expects about US$2bn in capital expenditures in the second half of the year as it spends on Model 3 equipment, its battery gigafactory and the expansion of its supercharger network, Bloomberg reported.
See also: Tesla posts net loss of $336m in Q2
