NEW YORK: Tesla Inc. plans to raise about $2 billion through debt and stock offerings, after Elon Musk overestimated the ability of the Model 3 sedan to generate enough cash for the company to be self-sustaining. Tesla stock, which had plunged 30% this year, rose 2% to $238.65 at 10:09 am in New York, and its bonds advanced. Tesla said the total proceeds of the offerings could be about $2.3 billion if underwriters fully exercise their option to purchase additional securities. It now costs about $1.5 million upfront to insure $10 million of Tesla bonds against a default for five years, down from $1.7 million on Wednesday. A raise of around $2 billion is in line with what several Tesla analysts were expecting.

Source: Mint May 02, 2019 14:37 UTC