In a new offering, electric automaker Tesla plans to raise up to $2 billion, consisting of a mixed bag of convertible notes ($1.35 billion) and equity shares ($650 million) along with a big purchase from Tesla’s CEO Elon Musk.
According to the filing, Musk intended to buy about $10 million shares of the company’s out of the new offerings – accounting for 41,896 shares out of a total equity offering for 2.7 million shares.
The move came only a week after the company’s CEO Elon Musk was questioned by analysts about raising capital for Tesla following its loss of $2 billion in cash in the first quarter of 2019.
Following this announcement, shares of Tesla which had fallen in premarket trading, bounced back when the company revealed the details of its offering about the combination of debt and equity securities. Shares closed trading up 4.3% at $244.10 a share.
Analysts have rated buy for Tesla’s stock, especially when after the last five purchases by Musk, the shares were higher by an average of 41% in the next three months. Lately, shares were under pressure, down nearly 30% this year.