Tesla is looking to offer $250 million in shares and $750 million in convertible debut as it looks to raise the cash required to support Musk’s expansion plans.
The automaker could raise $1.15 billion if underwriters purchase additional shares in what will be an attempt by Tesla to strengthen its finances. In a statement, the brand also said it will “further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3.”
As Tesla has increased production of the Model S and Model X while preparing to launch the affordable Model 3, many had anticipated it would look to raise cash.
Autonews reports that Tesla warned investors that it would spend between $2 billion and $2.5 billion in the first half of 2017 in capital expenditures.
This isn’t the first time Tesla has sold off shares to raise capital. It has done it a number of times in the past and has only reported a quarterly profit twice since hitting the stock exchange.
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