Tesla is going to raise an additional $400 million in its latest sale of stock, with co-founder and chief executive Elon Musk committing to buy an additional $15 million in shares, according to a filing with the Securities and Exchange Commission.
The electric vehicle, energy storage and solar panel manufacturer said it will sell 3.1 million shares at $243 per share. The underwriters are jointly underwritten by Goldman Sachs and Citigroup. At the same time, the company said it would boost its convertible note offering by another $100 million.
Initially, Tesla was going to sell $2.3 billion in stock and warrants, but the new totals boost that number to $2.7 billion, with Elon Musk upping the ante of his own purchase as part of the revised deal.
The company said that Musk would boost his purchase from $10 million to $25 million as part of the sale of stock.
News of the increased share sale, revised just one day after Tesla announced that it would turn to capital markets to raise more cash, comes despite its report of a rocky first quarter, just one week ago.
Zachary Kirkhorn even called it “one of the most complicated quarters” in Tesla’s history.
Tesla lost $702 million in the first quarter of the year, but its challenges and cash constraints haven’t dimmed investor appetite for shares in the stock.