Tesla planning $2.3bn fundraising

Electric car maker Tesla plans to raise around $2.3bn from investors, including a big purchase by chief executive Elon Musk.

The company has announced offerings of $650m of common stock and $1.35bn in convertibles, including a $10m share purchase by Musk. Tesla has also granted the underwriters a 30-day option to purchase up to an additional 15% of each offering.

It plans to use the nets proceeds from the offerings to further strengthen its balance sheet and for general corporate purposes.

Goldman Sachs and Citigroup are acting as lead joint book-running managers for the offering, with BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse acting as additional book-running managers, and Societe Generale and Wells Fargo Securities as co-managers.

At 1510 BST, the shares were up 2.1% at $238.83.