The time for Tesla Inc. to raise cash is fast approaching, say many analysts and investors, but the company’s fundraising options are fraught with complications.

Led by Chief Executive Elon Musk, the Palo Alto, Calif., firm has built a $50 billion market capitalization out of its promise to lead the way to a world of driverless electric cars. But in recent quarters it has struggled to build its first mass-market sedan, the Model 3, while burning through billions of dollars—a combination that is beginning to test investor patience.

While Mr. Musk has said Tesla won’t need to raise more money this year, not many analysts agree. To generate cash, they say Tesla needs to be able to consistently build around 5,000 Model 3s a week. That’s more than double the pace the company said it reached at the end of the first quarter, and a target the company has twice set back. Tesla now says it expects to make that many cars by the end of the second quarter.

The longer it takes Tesla to meet its production targets, the “greater the financial risk,” said Efraim Levy, a senior equity analyst at CFRA Research. Tesla shares have fallen roughly 2.2% this year.

No fundraising option is without drawbacks. Issuing new shares would dilute shareholders and likely drive down the share price, potentially rattling creditors and pushing up borrowing costs—a chain that could result in further share declines. And the falling price of Tesla’s unsecured bond means new debt could lead to significant added interest expense.