Tesla plans $2 billion capital raise
Illustration: Sarah Grillo/Axios
Tesla announced plans today to raise roughly $2 billion as it prepares new product launches and grapples with disappointing earnings. The company's stock was up 5% in pre-market trading.
The big picture: "Tesla intends to use the net proceeds from the offerings to further strengthen its balance sheet, as well as for general corporate purposes," the company said in announcing the offering of stock and debt.
Why it matters: It comes a week after the Silicon Valley electric automaker announced a $702 million first-quarter loss. The capital-raise includes a $10 million stock purchase from CEO Elon Musk.
- It arrives as Tesla seeks to speed up sales and deliveries of its Model 3 sedan, while planning to begin deliveries of the Model Y crossover in the fall of 2020. The company is also developing an electric semi-truck.
Go deeper: Tesla's profitability winning streak is over