Tesla to raise $1.15 billion ahead of launch of Model 3 electric car
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Electric car maker Tesla (NASDAQ: Tesla Motors [TSLA]) has announced it will raise $1.15 billion ahead of the launch of its new Model 3 vehicle.

The firm will raise the funds by offering $250 million of common stock and $750 million of senior convertible notes.

Underwriters will also have a 30-day option to purchase up to an additional 15 percent of each offering.

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CEO Elon Musk has indicated that he will personally buy $25 million of Tesla shares.

The news caused the company's share price to climb by more than three percent in after-hours trading.

Just last month Musk hinted at the capital raising saying Tesla was "close to the edge" in terms of its cash needs.

Tesla had $3.39 billion in cash and cash equivalents at the end of 2016 but has indicated that it plans to spend up to $2.5 billion in the first half of this year before beginning production of the Model 3.


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