Tesla to sell $1B in stock and notes to increase capital

The company lost just under $675 million last year but revenue rose 73 percent to just over $7 billion.

LOS ANGELES, CA - FEBRUARY 23:  The Tesla is displayed on the front of a Tesla Model X on February 23, 2017 in Los Angeles, California. Tesla shares dropped over 5 percent on Thursday  after a mixed fourth quarter earnigns report. The electric car company reported better-than-expected revenue  of $2.28 billion compared to a projected  estimate of $2.2 billion. The earnings were up 88% year over year, but well below the previous quarter's growth of 145%. The company also reported a per-share loss minus items of 69 cents.  (Photo by Justin Sullivan/Getty Images)
–Justin Sullivan / Getty Images

DETROIT (AP) — Electric car and solar cell maker Tesla Inc. wants to raise over $1 billion in new capital by selling stock and five-year convertible notes.

The company says the offerings will strengthen its balance sheet and reduce risks from scaling up to produce the $35,000 Model 3 electric car starting in July.

The company plans to offer $250 million worth of common stock and $750 million in notes due in 2022. Underwriters can buy another 15 percent, which would bring the total proceeds to about $1.15 billion.

Tesla says CEO Elon Musk will buy $25 million of the stock.

The company lost just under $675 million last year but revenue rose 73 percent to just over $7 billion.

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