Charles Sykes/Invision/AP, File
Tesla is raising cash.
The electric-car maker on Thursday revealed plans to sell a combination of stock and debt to raise about $2 billion of cash, sending shares up about 3.5% ahead of the opening bell.
Tesla plans to sell 2.72 million shares and $1.35 billion worth of notes, the automaker said in a filing out Thursday morning. Shares ended Wednesday’s session at a more than two-year low of $234.01 apiece, meaning the sale of 2.72 million shares would generate about $653,000. Combined with the debt offering, the company would raise about $2 billion.
Thursday’s announcement comes about a week after Tesla announced a wider-than-expected first quarter loss. On the company’s quarterly earnings call, CEO Elon Musk said he would be open to a capital raise.
"At this point, I do think there is some merit to raising capital," he said. "This is probably about the right timing."
Tesla’s stock has had a tough time as of late.
This story is developing. Check back for updates.
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Source: Business Insider – jgarber@businessinsider.com (Jonathan Garber)