Investors Cheer Tesla's $1.6B Convertible Notes Offering, Prospect For Proceeds

Shares of Tesla TSLA are continuing higher in Wednesday's post-market session as traders are digesting news of a $1.6 billion convertible notes offering. The offer was disclosed in a Form 424B5 shortly after the closing bell. Traders appear to be getting excited about the possible use of proceeds laid out by Tesla in the SEC filing. The company said the proceeds will be used for the development of the company's gigafactory and Gen III vehicles, as well as to help expand growth in both the US and internationally. Tesla had previously said it could invest anywhere from $4 to $5 billion on the gigafactory over the next six years. The offering is made up of $800 million aggregate principal amount of convertible senior notes due 2019 and $800 million in the same senior notes due 2021. The stock is up another 2.2 percent in after-hours trade following a closing at $253 even on Wednesday. Tesla shares surged nearly 14 percent on Tuesday and started the week off on Monday with a nearly 4 percent move higher.