Deals
Tesla Rallies on Plan to Raise $2 Billion to Counter Cash Drain
- Musk changed tune on capital needs after costly first quarter
- Infusion brings cash-to-sales ratio back to typical level: BI
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Tesla Inc. plans to raise about $2 billion through debt and stock offerings, after Elon Musk overestimated the ability of the Model 3 sedan to generate enough cash for the company to be self-sustaining.
The electric-car maker filed Thursday to sell $1.35 billion in convertible notes and about $650 million in shares. Tesla stock, which had plunged 30 percent this year, rose 2 percent to $238.65 at 10:09 a.m. in New York, and its bonds advanced.