Tesla closes $2.7bn offering as it raises cash to fuel expansion plans
Electric car company Tesla said today it had closed its $2.7bn (£2.08bn) offering of stock and convertible notes in an offering it said was oversubscribed.
The fundraise gives Tesla some much needed cash as it tries to boost production.
Tesla sold about $1.84bn in debt and $860m shares, with underwriters exercising their option to buy 15 per cent in each offering.
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The company announced the offering last week after it lost $700m in the first three months of the year.
There had been speculation that Tesla would have to return to the capital markets for more cash after it embarked on a rapid expansion plan which includes the construction of a factory in Shanghai and the launch of its upcoming Model Y SUV.
Tesla is preparing to spend between $2bn and $2.5bn this year and $2.5bn to $3bn next year. It finished the most recent quarter with $2.2bn in cash.
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Goldman Sachs and Citigroup acted as lead joint book-running managers for the offering, with BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse acting as additional book-running managers, and Societe Generale and Wells Fargo Securities acting as co-managers.
Tesla shares rose 0.7 per cent to $248 after markets opened.