Tesla secures a $40 million boost

Tesla received a infusion of $40 million in convertible debt financing from its investors this week. The board approved the cash to speed up the manufacturing process of the Tesla Roadster.

“Forty million is significantly more than we need,” said Elon Musk, Tesla Chairman and CEO. He goes on to say “However, the board, investors and I felt it was important to have significant cash reserves.”

Not only will the money help with production, but they will also use the cash to expand Tesla’s electric powertrain supply business and future product development. Tesla, like every other car maker, has recently had some issues due to the economic downturn and credit crunch, but demand for their cars is still high.