Tesla To Sell $2 Billion In Stock To Support Model 3 Launch
By David Muller | [email protected]
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on May 18, 2016 at 4:21 PM, updated May 18, 2016 at 5:22 PM
DETROIT, MI - Tesla Motors aims to raise about $2 billion to help pay for an ambitious production ramp-up, including $1.4 billion through a stock offering, the company announced Wednesday in investor documents.
The stock offering includes 6,800,000 shares, and the projected $1.4 billion amount raised is based on the assumed public offering price of $204.66 per share.
The balance in funds raised will come from company CEO and co-founder Elon Musk, who also plans to exercise stock options as well, Bloomberg reports.
Proceeds from the sale will also go towards the launch of the company's Model 3 electric car, which is directly tied to its aggressive production ramp-up.
The company revealed the Model 3 to great hype at the end of March. With a starting price of $35,000, the Model 3 is meant to be the electric car for the masses.
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