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The
company said on Friday it would offer about 2.7 million shares
at $242 per share, a slight discount to Thursday's close of
$242.51. (http://bit.ly/1J447y5)
The company's shares were up 0.7 percent at $244.10 in premarket
trading.
Chief Executive Elon Musk will maintain his investment of $20
million in the offering, Tesla said.
The automaker said on Thursday it would sell 2.1 million shares.
"Tesla's (offering), combined with existing credit lines, will
provide the company with more than enough cash for operational
purposes into 2016," S&P Capital IQ analyst Efraim Levy said
late on Thursday.
The company has been burning through cash as it expands its auto
and energy storage businesses.
Tesla said on Thursday it would use proceeds from the sale to
help fund its upcoming Model 3 project and Nevada-based battery
gigafactory.
Tesla's Model 3 vehicle, which will compete with BMW's <BMWG.DE>
3 Series sedans, is expected to go on sale in 2017.
Up to Thursday's close, Tesla's stock had fallen about 10
percent since Aug. 5, when the company reported second-quarter
results.
(Reporting by Sagarika Jaisinghani and Arunima Banerjee in
Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)
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