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Tesla Raises $1.1 Billion in Debt, Stock Sales
Electric vehicle maker Tesla Motors Inc. generated $1.1 billion from its sale of convertible notes and common stock on Friday one-third more than the company forecast earlier in the week.
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Electric vehicle maker Tesla Motors Inc. generated $1.1 billion from its sale of convertible notes and common stock on Friday one-third more than the company forecast earlier in the week.
Palo Alto, Calif.-based Tesla plans to use $452 million of the proceeds to repay the balance of its loan from the U.S. Dept. of Energy more than six years ahead of schedule. Bloomberg News reports that the company intends to make that payment this week.
The rest of the money raised will be used for "general corporate purposes," Tesla says.
The company sold $648 million in convertible notes and 3.5 million common shares for $92.24 each. The deal's underwriters are expected to exercise their right to buy an additional 400,000 shares. CEO Elon Musk purchased just over 1 million shares in a separate transaction.
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