Tesla to sell $1B in stock and notes to increase capital

Electric car and solar cell maker Tesla Inc. wants to raise over $1 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 percent, 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 percent to just over $7 billion.

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