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Tesla raises size of share sale, Musk to buy more

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Tesla Inc on Friday raised the size of its planned share offering to 3.1 million shares, priced at US$243 apiece, and said Chief Executive Officer Elon Musk would now buy stock worth up to US$25 million, more than double his initial commitment.

[WASHINGTON] Tesla Inc on Friday raised the size of its planned share offering to 3.1 million shares, priced at US$243 apiece, and said Chief Executive Officer Elon Musk would now buy stock worth up to US$25 million, more than double his initial commitment.

Tesla had said on Thursday it would raise up to US$2.3 billion in new capital through shares and debt, easing Wall Street concerns about the money-losing company's ability to overcome a drop in sales and build new product lines.

The filing on Thursday also showed that it would offer a total of around 2.7 million shares, with Musk pitching in US$10 million of his own money.

Tesla's plan to issue shares and convertible debt comes after the company repeatedly pushed back forecasts for turning a profit.

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The company faces expensive challenges, including launching production in China, overhauling its US retail and service operations and developing new models, including the high-volume Model Y SUV and a Semi commercial truck.

REUTERS