Canadian Manufacturing

Tesla looks to raise $1.15B ahead of Model 3 ramp up

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

March 16, 2017  by The Associated Press

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.

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The company lost just under $675 million last year but revenue rose 73 per cent to just over $7 billion.