Electric car maker Tesla announced on Wednesday that it could raise another $830 million in a combination of a new stock offering, and newly issued convertible senior notes. Tesla says it plans to sell another 2.70 million shares of common stock and $450 million worth of notes, in addition to an option for investors to purchase another 405,454 shares of stock and $67.5 million in notes.
On top of that Tesla says CEO Elon Musk plans to buy $100 million worth of common stock, of which $45 million will be bought in the offering, and $55 million will be bought directly from Tesla.
Tesla says it will use part of these funds — the notes specifically — to pay back the entirety of the loan to the Department of Energy early, and will also use some of the funds for other general corporate purposes. Tesla raised a $465 million loan from the DOE and has previously said it will pay that back in half the time it’s been allotted. So, that goal of half the time, has now been condensed even further.
Tesla has talked about raising more money for awhile, and many have speculated that company would want more funds to grow. This will be Tesla’s fourth offering (an S-3!). Back in 2011, Tesla also used a follow-on offering combined with a private placement to raise funds, and did so again, raising $221 million, in late 2012. The company went public in the Summer of 2010.
Tesla’s shares have been on a tear recently, and traded over $90 per share this week. On this news, Tesla stock was up 5.49 percent in after hours trading.