Tesla Inc. said on Friday it had raised about $1.2-billion (U.S.), roughly 20 per cent more than it had planned, by selling common shares and convertible debt, ahead of the launch of the crucial Model 3 sedan.
The company, led by Elon Musk, said it sold 1.3 million common shares at $262 apiece to raise $350-million and that it raised another $850-million though the sale of convertible senior notes due 2022.
The electric car company said on Wednesday it planned to sell $250-million worth of stock and $750-million in notes.
Tesla had been expected to raise capital since late last year, with the expectations gaining steam last month after Musk said the company could be “close to the edge” on cash needs.
Musk had Tesla was considering a number of options, including raising capital, to reduce risk ahead of the upcoming Model 3 sedan, the $35,000 mass-market vehicle on which the company’s future profitability hinges.
Tesla said Musk, already the company’s top shareholder with a stake of about 21 per cent as of December, bought 95,420 common shares for $25-million in the latest stock sale.
The 1.3 million shares sold represents about 0.8 per cent of Tesla’s outstanding shares as of Dec. 31.