Tesla is increasing the size of its capital raise to about $2.7 billion

  • Tesla now intends to raise up to $US2.7 billion in equity and convertible bonds, up from the $US2.3 billion figure announced Thursday.
  • The electric-car maker says it will offer 3.1 million shares of its stock and $US1.6 billion worth of convertible notes, up from 2.72 millions shares and $US1.35 billion in convertible notes.
  • Tesla CEO Elon Musk has signalled that he may buy up to 102,880 shares worth $US25 million, up from a maximum of 41,896 shares worth $US10 million.
  • Shares of the company rose 1.2% in premarket trading on Friday.
  • Visit Business Insider’s homepage for more stories.

Tesla now intends to raise up to $US2.7 billion in equity and convertible bonds, up from the $US2.3 billion figure announced Thursday.

The electric-car maker will offer 3.1 million shares of its stock and $US1.6 billion worth of convertible notes, it said in new regulatory filings. Tesla had previously planned to offer 2.72 million shares and $US1.35 billion worth of convertible notes.

Tesla CEO Elon Musk has signalled that he may buy up to 102,880 shares worth $US25 million, up from a maximum of 41,896 shares worth $US10 million.


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The company’s shares rose 1.2% in premarket trading on Friday and were trading at $US246.95 at the market open.

Musk said last year that he didn’t want to raise capital and that Tesla could become financially self-sufficient even as some analysts argued that a new round of fundraising would strengthen the company’s balance sheet and ease investor concerns. Musk indicated a willingness to raise new capital, however, following a $US700 million loss in its first fiscal quarter of this year that left the company with $US2.2 billion in cash.

“At this point, I do think there is some merit to raising capital,” he said during Tesla’s first-quarter earnings call. “This is probably about the right timing.”

Have you worked for Tesla? Do you have a story to share? Contact this reporter at [email protected].

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