INTERNATIONAL - Tesla Inc said on Thursday it had filed with regulators to launch around $2 billion in fundraising through issues of new shares and debt, with Chief Executive Officer Elon Musk pitching in $10 million of his own money to buy shares.
The company’s shares were up 5 percent at $245 in early trading after it unveiled the plans, which follow Musk’s hint last week that a capital raise was imminent after the electric carmaker lost $700 million in the first quarter..
Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans, which include the construction of a factory in Shanghai, the upcoming Model Y SUV, and other projects.
Tesla said it would seek to raise $650 million in new shares and $1.35 billion in debt with underwriters having the option to buy an additional 15 percent of each offering, potentially raising the proceeds of the deals to $2.3 billion.
Tesla expects capital expenditures of $2 billion to $2.5 billion this year and about $2.5 billion to $3 billion annually for the next two fiscal years. It ended its first quarter with $2.2 billion in cash.