Shares of Tesla Motors (NASDAQ:TSLA) opened 1.5 percent higher this morning as the electric car specialist announced it would be turning to the market to finance its rapid pace development.
The California based company said it would sell US$ 500 million new common shares.
Tesla’s CEO, Elon Musk, himself said he intends to buy US$20 million of the new shares issued in connection with this offer. In detail, 2.1 million shares will be issued at the previous day’s closing price of US$238.17.
This announcement is not a surprise since the company warned last week it would be raising more funds after reporting a widening of its losses.
The electric car manufacturer is especially keen on expanding its distribution networks and free charging stations while also ensuring the continued development of its mid-range (about US$35,000) Model 3 and its Li-ion battery manufacturing facility, known as the Gigafactory.
Meanwhile, Tesla is getting ready to unveil the Model X crossover in September. The new vehicle has been already available for pre-sale for some time on the manufacturer's website; buyers were simply required to place a US$5,000 down payment to secure one of the first 12,000 models on blind faith the car will look like the concept presented in 2012.
The presentation in September will be the occasion for the 12,000 people who have already pre-ordered the model to discover their new car, which will feature style doors like the classic Mercedes 300 SL at the rear. The first deliveries to the United States will begin at the end of this year.