FILE - In this Thursday, March 14, 2019 file photo, Tesla CEO Elon Musk speaks before unveiling the Model Y at the company's design studio in Hawthorne, Calif. Elon Musk and U.S. securities regulators have settled their dispute over the Tesla CEO's tweets, with Musk agreeing to having his future communications regarding the electric-car maker pre-approval by a company-employed expert. The Securities and Exchange Commission and Musk reached the agreement, which they detailed in filings Friday, April 26, 2019 in federal court in Manhattan. (AP Photo/Jae C. Hong, File)

Tesla to raise money after painful 1Q, and Musk is buying in

May 02, 2019 - 8:21 am

PALO ALTO, Calif. (AP) — A week after posting a huge first quarter loss and saying the company needs to raise cash, Tesla is doing just that and CEO Elon Musk will buy $10 million worth of stock in an $1.5 billion offering of shares and convertible notes.

Tesla said Thursday that it's offering $650 million of common stock and $1.35 billion in convertible senior notes due in 2024 in two separate offerings.

The company anticipates gross proceeds of about $2.3 billion, before discounts and expenses.

Last week, Tesla reported its cash balance at the end of the first quarter shrunk by $1.5 billion since December, to $2.2 billion. Musk said during a conference call that Tesla might need to raise capital again.

Shares of Tesla Inc. jumped 5 percent before the opening bell.

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