Tesla Inc TSLA announced Wednesday after hours that the company is raising $1.15 billion by offering $250 million of common stock and $750 million of convertible senior notes that will be due in 2022.
The electric car maker says it will use the proceeds to "strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3."
See Also: Electric Vehicle News That Might Be Negative For Tesla
Tesla grants the underwriters a 30-day option to purchase up to an additional 15 percent of each offering.
It was also announced that Elon Musk will purchase $25 million of common stock.
The stock traded up more than 2 percent at $261.40.
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