Tesla Plans Stock Sale to Raise $643 Million

Tesla Motors Inc. intends to raise $643 million by selling 2.7 million shares at $242 per share.

CEO Elon Musk, who owns 22.3% of the company, plans to buy $20 million of the new offering. Underwriters will have the option to buy as many as 300,000 additional shares.

Tesla burned through $359 million in cash in April-June as it prepared to launch the Model X electric crossover vehicle this autumn.

Proceeds from the stock sale will be used to bolster the company's new stationary electrical storage business, develop the Model 3 electric sedan due in 2017 and continue construction of its giant battery "gigafactory" in Nevada, according to a filing with federal regulators.