By Chris Wack

 

Tesla Inc. said Thursday it intends to offer about $2 billion of common stock in an underwritten registered public offering.

The company said it has granted the underwriters a 30-day option to purchase up to $300 million of additional common stock.

Tesla said Chief Executive Elon Musk will participate by purchasing up to $10 million of common stock in the offering, and board member Larry Ellison will purchase up to $1 million of stock.

The company said proceeds of the offering, assuming full exercise by the underwriters of their option to purchase additional securities, would be about $2.3 billion.

Tesla said it intends to use the net proceeds from the offering to further strengthen its balance sheet, as well as for general corporate purposes.

Tesla shares were down 4% to $738.11 in premarket trading.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

February 13, 2020 08:09 ET (13:09 GMT)

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