REUTERS: Tesla Inc launched issues of new shares and debt worth more than US$2 billion on Thursday, with Chief Executive Officer Elon Musk pitching in US$10 million as the electric carmaker gave in to Wall Street pressure to bolster its cash reserves.
The company said in the filing that it would seek to raise US$650 million in new shares and US$1.35 billion in debt, with underwriters having the option to buy an additional 15 percent of each offering, potentially raising the proceeds to US$2.3 billion. "The growing worries around capital were a black cloud over the stock on the heels of the company's troubled March results and the choppy path ahead."In first-quarter results that disappointed many on Wall Street last week, Musk promised the company would deliver a profit again by the third quarter of this year, but the company's huge investments mean it is leaking cash swiftly.
Analysts said last week that the company would probably seek between US$1 billion and US$3 billion dollars, and that it would cost significantly more than it would have a year ago, when some on Wall Street were already calling for a capital raise.
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