Tesla (TSLA) closes its massive $2.7 billion capital raise to boost its cash position

Tesla announced today that it closed its new capital raise yesterday and it was over-subscribed with underwriters selling the additional shares and notes for total proceeds of $2.7 billion to boost Tesla’s cash position.

The automaker first announced a capital raise last week and said that it aimed to raise up to $2.3 billion.

At the time, the company said that it would use the proceeds from the capital raise for general use after its cash position dropped by over $1.5 billion dollars during the previous quarter.

A day later, Tesla increased its capital raise to total potential proceeds of up to $2.7 billion.

Today, Tesla confirmed that it sold about $860 million in shares and raised $1.84 billion in convertible notes.

The company wrote in the SEC filling:

“On May 7, 2019, Tesla, Inc. (the “Company”) closed its previously announced underwritten public offerings of (1) 3,549,381 shares of common stock of the Company, par value $0.001 per share (the “Common Stock”), which includes 462,962 shares sold pursuant to the underwriters’ (the “Underwriters”) option to purchase additional shares, which was exercised in full on May 3, 2019; and (2) $1.84 billion aggregate principal amount of the Company’s 2.00% Convertible Senior Notes due May 15, 2024 (the “Notes”), which includes $240.0 million aggregate principal amount of Notes sold pursuant to the Underwriters’ option to purchase additional Notes (the “Option Notes”), which was exercised in full on May 3, 2019, in each case pursuant to a Registration Statement on Form S-3 (File No. 333-231168) (the “Registration Statement”) and accompanying prospectus, together with the related prospectus supplements for the underwritten public offerings of the Common Stock and the Notes, filed with the Securities and Exchange Commission.”

Here’s the new SEC filing in full:

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