Tesla Completes $2.4 Billion Bond and Stock Sale

May 03, 2019 at 3:13 PM

Tesla Inc. has raised at least $2.4 billion through the sale of stock and bonds to shore up its cash supply.

The company sold $1.6 billion in convertible bonds, some $250 million more than originally expected. It also raise about $750 million—$100 million more than initially targeted—by selling 3.1 million common shares priced at $243.

Tesla could raise another $300 million if underwriters exercise options to buy more stock and bonds, The Wall Street Journal notes.

The new capital will help Tesla through the strains of hiking production of its Model 3 electric sedan and smoothing distribution glitches for the car overseas. The company reported last week that those issues caused its cash supply slumped 40% to a three-year low of $2.2 billion in the first quarter of 2019.