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May 15 (Reuters) – Tesla Motors announced on
Wednesday it is offering 2.7 million shares of common stock and
convertible senior notes to pay back loans from the U.S.
Department of Energy.
Elon Musk, Tesla’s chief executive officer and co-founder,
said he intends to buy $100 million of shares in the company as
well.
The share price of the electric carmaker, based in Silicon
Valley, has risen 50 percent since it reported first-quarter
earnings on May 8.
In addition to the sale of common stock, Tesla said it will
offer $450 million of convertible senior notes due in 2018.
The gross proceeds of the two offerings and Musk’s purchases
is expected to be $830 million.
