Tesla said Thursday it plans to raise up to $2 billion in fresh capital.
The filing comes a week after the carmaker said it lost $700 million in the first quarter, and is now down to about $2 billion in cash.
A regulatory filing shows a plan to raise $1.35 billion from convertible notes and $650 million from new equity, including significant purchase from CEO Elon Musk. The filing says proceeds will be used for “general corporate purposes.”
The offering is being underwritten by Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Morgan Stanley, Credit Suisse, Societe Generale and Wells Fargo.
Musk intends to buy about $10 million of Tesla stock in the new offering, the filing said. Musk’s purchase would be 41,896 shares of the total equity offering of 2.7 million shares. Musk owns about 20% of Tesla’s outstanding shares.
Speaking on Tesla’s Q1 earnings call last week, Musk said said he saw “some merit to raising capital,” given the “right timing.”
Tesla shares have been down nearly 30% this year.