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Tesla Hopes to Charge Up with $1B Stock Offering

Wall Street growing increasingly jittery ahead of Model 3 launch.

by on Mar.16, 2017

Tesla CEO Elon Musk plans to buy the first $25 million worth of shares from the company's new $1B offering.

Running out of juice just as it prepares for the most important product launch in its short history, Tesla is once again going to the well, hoping to raise $1 billion through a new stock offering.

The announcement comes just weeks after founder and CEO Elon Musk revealed a dim fourth-quarter earnings report and warned that the battery-carmaker was “getting very close to the edge” in terms of its cash reserves.

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The latest stock offering, which comes less than a year after Tesla’s previous turn to the market, is meant to “reduce any risks associated with the rapid scaling of (our) business due to the launch of Model 3, as well as for general corporate purposes,” the company said. (more…)