Tesla indicates that it would raise up to $2B in fresh capital
According to reports, US electric vehicle maker Tesla has indicated that it has efforts underway to secure fresh capital to the tune of $2 billion.
With an offering of common stock and convertible notes already filed by Tesla to raise $2 billion, the company expects to secure $650 million in the form of new equity, with $1.35 billion expected to come in the form of convertible notes. In addition, $10 million will be acquired in shares by Tesla CEO Elon Musk.
Going by the filings by Tesla, some of the funds underwriting the company’s offering include Goldman Sachs, Bank of America, Citigroup, Societe Generale, Morgan Stanley, Wells Fargo, Credit Suisse, and Deutsche Bank.
Tesla had last raised fresh capital 2017, in advance for its Model 3 electric car. The company now requires fresh funds or a secure capital income in order to sustain its investment in building up its production capacity for electric vehicles more effectively.
With regard to the potential $2 billion fresh capital that Tesla is looking to raise, the company has elaborated in a press release how it will be using the net proceeds. Tesla specifically said that it would use the amount “to further strengthen its balance sheet, as well as for general corporate purposes.”