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Tesla (TSLA) closes its capital raise with slightly more proceeds than expected: $1.2 billion

Tesla confirmed today in a SEC filing that it closed its capital raise announced earlier this week. The underwriters increased the amount of equity and convertible notes to $1.2 billion. As reported last week, Tesla says that the proceeds from the offerings will help the company “strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3, as well as for general corporate purposes.”

They had first announced plans to raise $250 million from the sale of common shares and $750 million in convertible notes, but it ended up with 1.3 million common shares at $262 per share for about $350 million in equity and $850 million in convertible notes for a total of approximately $1.2 billion.

The new shares represent less than 1 percent dilution for Tesla shareholders, but it could end up more depending on the convertible notes – though the company says that they aim to minimize dilution with the notes.

CEO Elon Musk participated in the stock offering and bought 95,420 shares for almost exactly $25 million. Musk has been borrowing hundreds of millions from Morgan Stanley and Goldman Sachs in order to participate in almost all of Tesla’s new capital raises and maintain his large stake in the company, which is now worth about $9 billion out of a total valuation of $42.5 billion.

As we reported yesterday, Musk believes that Tesla will not need to raise more capital by the end of the year, but he still left the door open.

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