Tesla raises $1.2bn in shares, convertible debt sale as Model 3 sedan launch nears

Electric-vehicle maker Tesla Inc. has scooped up $1.2bn in a capital raising of common shares and convertible debt, as it nears the launch of its Model 3 sedan.

Tesla said it sold 1.3m common shares at $262 each, raising $350m. A further $850m was achieved by selling convertible senior notes, due 2022. In total the company raised about 20% more than it anticipated.

The capital hike followed chief executive Elon Musk commenting in February that Tesla could be close to the edge on its cash needs.

The upcoming Model 3 sedan, priced at about $35,000, was seen as a key element in Tesla's future development and profitability.

Musk bought 95,420 shares in the capital raise, equating to about $25m worth. In December, his stake in the electric car maker was about 21%.