The move comes a week after hedge fund manager David Einhorn warned that the Model 3 could cause cash problems for Tesla, as the company was "currently only capitalized for the next three quarters", and the model will naturally require more scale than earlier Tesla vehicles.
This would be the company's first sale of non-convertible bonds, according to data compiled by Bloomberg.
Ultimately, the depth of investor interest will determine the bond's interest rate.
For a while now it's been a goal among electric auto enthusiasts, especially Tesla owners, to set new records in how far they can drive their vehicles on a single charge.
"There is a risk they could still run out of money", he said. Since December, Tesla has burned through more than $350 million in cash, and the spending on ramping up Model 3 production is just beginning.
Tillerson urges Pyongyang to stop missile tests
China and Russian Federation slammed United States deployment of the THAAD anti-missile defense system in South Korea. However Pyongyang has so far rejected offers of dialogue, cooperation and humanitarian assistance.
The $35,000 price of the new model is half the cost of its base Model S - and is considered to be Tesla's first electric vehicle marketable to the middle class.
The rating agency said the overall company's "B2" rating was supported by the fact that if Tesla ends up in serious financial trouble, its brand name, products and physical assets would be of "considerable value" to other automakers.
The Model 3 base unit costs $35,000, which is about half the price of Tesla's next-cheapest vehicle, the Model S. While Tesla believes the lower price point would enable it to become more mainstream, analysts worry about the impact on margins, which already are under pressure.
When Musk was asked last week if he would like to raise more cash as a buffer, he said the company was considering a debt offering but not an offering of stocks. And, if recent Wall Street commentary is anything to go by, the street might be underestimating Tesla's Model 3 production ramp-up.
Tesla chief executive Elon Musk congratulated the club on the record, which was issued by a public notary with a lawyer sealing the charge cap before starting the attempt, the club said. "Obviously, that's like the promised land right there". In the last ninety days, insiders have sold 115,980 shares of company stock valued at $36,010,269. Piper Jaffray Companies set a $386.00 price objective on Tesla and gave the stock a buy rating in a research note on Thursday. The rush of pre-orders allowed Tesla to recently become the biggest USA vehicle company in terms of market capitalisation, despite the fact that General Motors (GM) and Ford produce millions of cars per year and Tesla has yet to make a profit.