Tesla raises size of share sale, Musk to buy more

(REUTERS) - Tesla Inc yesterday raised the size of its planned share offering to 3.1 million shares, priced at US$ 243 apiece, and said Chief Executive Officer Elon Musk would now buy stock worth up to US$ 25 million (£19.2 million), more than double his initial commitment.

Tesla had said on Thursday it would raise up to US$2.3 billion in new capital through shares and debt, easing Wall Street concerns about the money-losing company’s ability to overcome a drop in sales and build new product lines.

The filing on Thursday also showed that it would offer a total of around 2.7 million shares, with Musk pitching in US$ 10 million of his own money. Tesla’s plan to issue shares and convertible debt comes after the company repeatedly pushed back forecasts for turning a profit.

The company faces expensive challenges, including launching production in China, overhauling its U.S. retail and service operations and developing new models, including the high-volume Model Y SUV and a Semi commercial truck.

Shares of the electric-car maker were up 1.5 percent at US$ 247.80 before the bell.