Tesla plans second stock offering to raise more than $2B

Feb. 14 (UPI) -- Electric automaker Tesla says it will make a secondary stock offer in a bid to raise more than $2 billion to shore up its balance sheet -- less than two weeks after boss Elon Musk said it "didn't make sense" to raise more money.

The company said in a filing with the Securities and Exchange Commission late Thursday it will make a secondary offer of $767 per share, and the money will be spent on general business expenses.

"We expect to receive net proceeds from this offering of approximately $2.01 billion after deducting the underwriting discounts and our estimated offering expenses," Tesla wrote in the filing. "We intend to use the net proceeds from this offering to further strengthen our balance sheet, as well as for general corporate purposes."

Musk is interested in buying more than 13,000 shares worth $10 million, and Oracle co-founder Larry Ellison will buy 1,300 shares worth $1 million, the filing noted.

Tesla's secondary offer is being underwritten by Goldman Sachs and Morgan Stanley and each will have 30 days to buy another $300 million in shares.

"The aggregate gross proceeds of the offering, assuming full exercise by the underwriters of their option to purchase additional securities, would be approximately $2.3 billion," Tesla said in a statement.

Tesla shares have grown in value by more than 75 percent since the start of 2020.

During an earnings call on Jan. 30, Musk said it didn't make sense for the company to try and raise money because "we expect to generate cash despite [expansion] growth."