Tesla plans to raise $1.15 billion through a sale of common stock and convertible senior notes in an effort to raise enough cash to support the launch of its new mass market Model 3 vehicle.
The company will sell $250 million in stock as a secondary offering, along with $750 million in debt. In fact, Tesla said in its prospectus Wednesday that Musk plans to buy another $25 million worth of stock.
The Model 3 is priced at a moderate $35,000 in the United States, much below the price of its initial models S and X electric vehicles.
The company has been expected to increase the capital since late previous year, a move that got approval when Musk last month said that the company is "close to the edge" on its requirement for cash. That's evidently not true.
At the end of February, rumors from the supply chain suggested a pre-production of a Tesla Model 3.
UBS analyst Colin Langan, who has a Sell rating on the stock, thinks it "could imply another raise later if the Model 3 is delayed".
Tesla's stock rose 2% in after hours trading Wednesday following the announcement.
Naturally, Tesla's Model 3 is a topic of conversation not only among vehicle enthusiasts, but also within the four-cylinder walls in Munich.
Kelly family speaks out about BBC viral video
Jung-A seemed more relaxed about it, saying she only hopes that people just enjoy the video and don't squabble about the issue. Mr Kelly told the BBC his first reaction had been "mortification" and worry that the broadcaster would never call him again.
The Model 3 is the key to Musk's push to reach mainstream consumers.
He has also borrowed $279,9m from financial institutions that aren't involved in the company's offering and are secured by a portion of Tesla stock, the company said.
Underwriters will also have a 30-day option to purchase up to an additional 15 percent of each offering.
Musk expressed confidence in an earnings call at the time that Tesla electric vehicle production would climb to 500,000 next year.
Tesla also has plans to put a bigger battery on their latest auto, increasing its range to a respectable 230 miles on a single charge.
Goldman, Sachs & Co., Deutsche Bank Securities, Citigroup and Morgan Stanley are acting as lead joint book-running managers for the offering.
The base model Lucid Air will have "all hardware necessary for autonomous driving", according to Lucid, but the company steers clear of saying whether it will cost more to activate the feature.
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