Tesla co-founder and chief executive Elon Musk will take part by buying $25 million worth of the new shares, according to the California-based company.
Several analysts have anticipated that the electric carmaker will pad out its balance sheet with more capital, while other analysts were expecting Tesla to seek more in order for the Model 3 production to expand. The Model 3, scheduled to start production in July, will start at about $35,000 before incentives and is smaller than the Model S. "If the launch is delayed (note the Model 3 beta prototype is not yet approved by the board), cash burn would be worse, putting them close to the $1 billion cushion they need".
Tesla shares rose almost 2% in after-hours trading.
The Tesla Model 3 hasn't even hit the market yet, but the company is already planning to unleash another compact crossover built on the same platform as the Model 3.
Tesla added that the company would also provide an over-allotment provision. The automaker and energy company said in its quarterly shareholder letter in February that it will finalize locations for as many as three more massive factories, which it calls gigafactories, a term that aims to discourage any attempts to compare these to the typical manufacturing facility. The forthcoming raise "is at the low-end of the $1-2bn we expected, and could imply another raise later if the Model 3 is delayed", he wrote.
Winter weather advisory issued for Luzerne, Lackawanna counties
A shift farther east (out over the ocean) with the storm track and everyone gets more snow . Forecasters also say there is a chance that more significant snow could happen on Tuesday .
The billionaire has borrowed for years from Tesla underwriters including Goldman Sachs Group and Morgan Stanley.
Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells electric vehicles and energy storage products. Instead of falling, Tesla stock is climbing in premarket trading today.
Once completed, the Gigafactory, which is projected to have capacity to manufacture lithium-ion batteries for 500,000 vehicles annually, will accelerate the pace at which Tesla can become profitable. They're playing roles in Tesla seeking to raise $1.15 billion through an offering expected to price on Thursday after the market close.