The company is offering $250M in common stock and $750M in convertible notes. He'll participate in the capital raise by purchasing $25 million of common stock, the company said.
Tesla is facing some expensive months ahead as it prepares to produce the Model 3, continues to scale its massive battery factory outside of Reno, and integrate SolarCity into its business.
SAN FRANCISCO Tesla Inc (TSLA.O) said on Wednesday it expects to raise about $1.15 billion from a stock and senior notes offering, an infusion of needed capital as the electric vehicle maker enters pre-production of its upcoming Model 3 electric sedan.
As for other vehicles Tesla might eventually release, Musk previous year said that a pickup truck might eventually be released.
As part of the ongoing test of the vehicle design and manufacturing processes, the primary crash test resulted in being positive, and all the Tesla Model 3-related is on a plan to start of it production in July.
Musk, 45, is Tesla's largest shareholder with a 20.8 percent stake.
The less robust the cash flow, the more likely that a publicly traded company-in this case, Tesla-will need to raise more shares.
Prior to the Tesla filings, Trump was in MI to meet with automotive leaders and said he would reverse a decision by the Obama Administration to lock in a mandate requiring automotive corporate average fuel economy, or CAFE, reach 54.5 miles per gallon by 2025.
Tesla's stock fell.9% in trading today and after the offering was announced the stock is up over 2%. "Thankfully we were there to capture it for our fellow Tesla fanatics".
With that said, this is probably not how the Model 3 will end up looking on its release.
One of the Tesla was a base model auto, which had no options like a motorized sunroof, sound system, and high output charger, making the vehicle lighter due to less weight.