Tesla shares jump on news of capital raising
Tesla has filed with regulators to launch about $2bn in fundraising through issues of new shares and debt
Bengaluru — Tesla said on Thursday that it had filed with regulators to launch about $2bn in fundraising through issues of new shares and debt, with CEO Elon Musk pitching in $10m of his own money to buy shares. The company's shares were up 5% at $245 in early trading after it unveiled the plans, which follow Musk's hint last week that a capital raise was imminent after the electric-car maker lost $700m in the first quarter. Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans, which include the construction of a factory in Shanghai, the upcoming Model Y SUV, and other projects. Tesla said it would seek to raise $650m in new shares and $1.35bn in debt with underwriters having the option to buy an additional 15% of each offering, potentially raising the proceeds of the deals to $2.3bn. Tesla expects capital expenditures of $2bn-$2.5bn in 2019 and about $2.5bn-$3bn annually for the next two fiscal years. It ended its first quarter with ...
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