Tesla raises $1.2B ahead of production of Model 3 sedan

American automaker Tesla has raised about $1.2 billion through the sale of common stock and convertible debt stock. The fund flew in at a time when the company is gearing up for the production of its first mass-market electric vehicle. The amount raised is reportedly about 20 percent more than what was planned. According to a document filed by the company with the Securities and Exchange Commission, the California-based manufacturer sold its stock at $262 per share, raising nearly $350 million in proceeds, and another $850 million via convertible debt. The company, led by Elon Musk, said it sold 1.3 million common shares at $262 apiece to raise $350 million and that it raised another $850 million though the sale of convertible senior notes due 2022. According to a report by Fortune, Tesla shares opened at $264 today morning before dropping 0.7% and then rebounding. Shares were trading at about $264.55 by midday. The filing revealed that CEO Elon Musk personally bought $25 million in Tesla shares which denotes a gesture of faith in the company’s prospects. Musk was considering a number of options, including raising capital, to facilitate the manufacturing of the upcoming Model 3 sedan without drying up the funds. In a shareholder letter issues last month, the company noted that it expects “to invest between $2 billion and $2.5 billion in capital expenditures ahead of the start of Model 3 production”.

Last month, Tesla revealed plans to launch its operations in India this summer. Musk had hinted the development of Model 3 last year, in April, when he had tweeted that its incoming Model 3 will be launched in new markets including India, Brazil, South Africa, South Korea, New Zealand, Singapore and Ireland.