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Tesla Plans $1 Billion Stock and Notes Offering
Tesla Inc. hopes to raise $1 billion in new capital by selling $250 million in common shares and $750 million in convertible notes.
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Tesla Inc. hopes to raise $1 billion in new capital by selling $250 million in common shares and $750 million in convertible notes.
The EV maker says CEO Elon Musk will purchase $25 million of the new shares. Underwriters have the option of exercising options that would increase the offering to nearly $1.2 billion.
The company says the sale will help fortify its balance sheet as it ramps up production of the $35,000 Model 3 electric sedan in the second half of the year. Last month Musk cautioned analysts that Tesla would need more cash to offset launch costs and other programs. The company has posted only two profitable quarters since it went public in June 2010.
Tesla, which made fewer than 84,000 EVs last year, has vowed to achieve an annual production pace of 500,000 units by the end of 2018 and 1 million units in 2020. The company also is developing a crossover vehicle based on the Model 3, a driverless shuttle and a heavy-duty truck.
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