Tesla seeks to raise US$ 2.3 billion for expansion

Tesla has announced that the company will be raising US$ 2.3 billion by sales proceeds of shares and convertible debt. The funds will be used to strengthen the balance sheet as well as for general corporate purposes.

The electric carmaker is setting up a production facility in China, updating its US retail network and developing new models like the Model Y SUV and the electric semi truck as well. The need for extra funds came up after Tesla reported a first quarter loss of US$ 702 million.

Tesla plans to raise US$ 650 million in form of new shares and US$ 1.35 billion in debt. Additionally, underwriters would get an option to buy an additional 15% of each offering. CEO Elon Musk will also be pledging US$ 10 million. After this announcement, Tesla's share price increased marginally.