Tesla looks to raise $1.15B ahead of Model 3 ramp up
by The Associated Press
The Elon Musk-headed firm aims to strengthen its balance sheet by selling stock and notes as it prepares to launch its mass market EV
The company’s new Model 3 is expected to go into production this summer. PHOTO: Alexis Georgeson/Tesla
DETROIT—Electric car and solar cell maker Tesla Inc. wants to raise over US$1.15 billion in new capital by selling stock and five-year convertible notes.
The company says the offerings will strengthen its balance sheet and reduce risks from scaling up to produce the $35,000 Model 3 electric car starting in July.
The company plans to offer $250 million worth of common stock and $750 million in notes due in 2022. Underwriters can buy another 15 per cent, which would bring the total proceeds to about $1.15 billion.
Tesla says CEO Elon Musk will buy $25 million of the stock.
The company lost just under $675 million last year but revenue rose 73 per cent to just over $7 billion.
