Tesla Motors Raises Share Sale To $642.5 Million

Tesla Motors Raising Nearly 650 Million Dollars

Tesla Motors Inc. has raised its upcoming $500 million share sale to $642.5 million.

The company said on Friday that it would increase its offering to 2.7 million shares at $242 per share.

Chief Executive Elon Musk also revealed that he plans on continuing to personally finance the company with a $20 million share buy.

The automaker said on Thursday it would sell 2.1 million shares.

“Tesla’s (offering), combined with existing credit lines, will provide the company with more than enough cash for operational purposes into 2016,” S&P Capital IQ analyst Efraim Levy.

Tesla has continued to burn through its raised cash as the company expands its automotive and battery manufacturing plants. The company plans to use some of the raised money to build out its Model 3 project and to finish construction on its Nevada-based battery gigafactory.

Tesla’s Model 3 vehicle, which will compete with BMW’s 3 Series sedans, is expected to go on sale in 2017.

Tesla share prices have fallen by nearly 10 percent since Aug. 5, when the company reported second-quarter results.