Investors can't seem to get enough of the shares of Tesla Motors (NASDAQ:TSLA), which has increased the size of its share offering.
The electric car maker announced plans on Thursday to raise funds to accelerate growth by offering for sale some 2.1mln shares at up to US$242 a pop.
The size of the issue has now increased to 2.7mln shares, which means the company could raise up to US$652mln, and that sum could even rise to US$750mln if the share issue's underwriters elect to take some shares on their own account.
The car maker faces a period of heavy capital expenditure as it prepares to expand beyond its home market and augment its product line, with the launch of is sports utility vehicle (SUV) Model X imminent.
The heavily indebted firm is no doubt keeping a wary eye on the interest rate environment, with the Federal Reserve widely expected to lift rates some time this year, and has opted to issue equity rather than debt in order to raise capital.
Tesla's chief executive, Elon Musk, has said he himself will buy US$20mln new shares in the company.
Tesla targets its cars at the luxury end of the market and a lot is riding on the launch of the Model X, especially as it is facing competition from the likes of German luxury car maker Audi, which plans to unveil its Q6 Coupe electric car at the Frankfurt motor show next month.