Photo by Smith Collection/Gado/Getty Images(NEW YORK) — Tesla Motors is planning to offer more than $1 billion in stock and securities in an effort to secure its financials before bringing its Model 3 vehicle to market.
The company announced offerings of $250 million in common stock and $750 million in convertible senior notes. The company is expected to begin production on its Model 3 later this year and be more affordable than Tesla’s previous vehicles.
Bloomberg notes that Tesla warned Wall Street that it was “close to the edge” late last year after spending nearly $1 billion in the fiscal fourth quarter.
On Wednesday evening, Tesla was at $262.14 per share — up 2.5 percent.
Tesla CEO Elon Musk said on a Feb. 22 conference call that while raising funds wasn’t critical to the release of the Model 3, it was a good idea.
The Model 3 is expected to retail for under $40,000, and the company hopes to produce 500,000 vehicles by 2018 and one million by 2020. In 2016, Tesla produced nearly 84,000 vehicles.
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