Tesla has announced that late last week, it officially raised $1.2 billion in preparation for the Model 3’s market launch.
In SEC filings, Tesla said it raised approximately $350 million by selling stocks and $850 million in convertible debt. Elon Musk has also expressed interesting in purchasing up to 95,420 shares at a purchase price of around $25 million.
As part of the announcement, the electric automaker says that the sale of stock and convertible debut could rise to $1.4 billion if the underwriters fully exercise their options to purchase additional common stock and notes.
Tesla officially reports that the proceeds will be used to strengthen its balance sheet while also reducing risks associated with the company’s rapid expansion due to the launch of the Model 3.
Although the company is preparing itself for the arrival of the Model 3, some analysts remain wary of whether deliveries of the Model 3 will commence in July as promised by Elon Musk. The chief executive recently said that key suppliers were on schedule for the July launch but the company has a well-reported history of missing deadlines.
PHOTO GALLERY
