Patrick Fallon / Reuters
- Tesla now intends to raise up to $2.7 billion in equity and convertible bonds, up from the $2.3 billion figure announced on Thursday.
- The electric-car maker will now offer 3.1 million shares of its stock and $1.6 billion worth of convertible notes, up from 2.72 millions shares and $1.35 billion in convertible notes.
- Tesla CEO Elon Musk has signaled that he may buy up to 102,880 shares worth $25 million, up from a maximum of 41,896 shares worth $10 million.
- Shares of the company rose 1.2% in pre-market trading on Friday.
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Tesla now intends to raise up to $2.7 billion in equity and convertible bonds, up from the $2.3 billion figure announced on Thursday.
The electric car-maker will offer 3.1 million shares of its stock and $1.6 billion worth of convertible notes, it said in new regulatory filings. Tesla had previously planned to offer 2.72 million shares and $1.35 billion worth of convertible notes.
Tesla CEO Elon Musk has signaled that he may buy up to 102,880 shares worth $25 million, up from a maximum of 41,896 shares worth $10 million.
Read more: Elon Musk owes $507 million to banks helping Tesla raise capital
The company’s shares rose 1.2% in pre-market trading on Friday, and were trading at $246.95 at the market open.
Musk said in 2018 that he didn’t want to raise capital and that Tesla could become financially self-sufficient as some analysts argued that a new round of fundraising would strengthen the company’s balance sheet and ease investor concerns. Following a $700 million loss in the first quarter that left the company with $2.2 billion in cash, Musk indicated a willingness to raise new capital.
"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 mmatousek@businessinsider.com.
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Source: Business Insider – mmatousek@businessinsider.com (Mark Matousek)