Tesla to Raise $2.7 Billion in Capital

CBJ — Just one day after announcing plans to sell notes and stock to raise much-needed capital, Tesla boosted the size of its offering to as high as $2.7 billion.

The electric car and solar panel maker said it’s increasing the offer due to the positive response to its prior announcement of trying to raise $2.3 billion.

Another reason for investor optimism is that CEO Elon Musk has more than doubled the amount of stock he will acquire from $10 million, to $25 million.

Earlier this month Tesla reported its cash balance at the end of the first quarter shrank by $1.5 billion since December, to $2.2 billion. Musk said during a conference call that Tesla might need to raise capital again.