Musk himself is expected to buy US$25 of common stock which translates to 96,900 shares at the public offering price.
Elon Musk recently attended the 2017 World Government Summit in Dubai, to launch Tesla in the UAE.
Tesla Inc said it expects to raise about $1.15 billion from a stock and senior notes offering, an infusion of needed capital as the electric vehicle maker enters pre-production of its upcoming Model 3 electric sedan. This would raise a total of $1 billion, nearly exactly the amount of debt it is suggested Tesla needs to overcome.
It will also be interesting to see what the final model 3 battery options will be so the vehicle doesn't tread on the toes of the rest of the Tesla line-up.
"One year ago, we introduced the Model S 60 kWh battery as a more affordable option to accelerate the adoption of electric vehicles". Tesla says it expects to spend $131.5 million of the note proceeds to cover the costs of these hedges, which will only be partially offset from proceeds from the warrant transactions.
Elon Musk, CEO and CTO of SpaceX, CEO and product architect of Tesla Motors, and chairman of SolarCity, attends the Allen & Company Sun Valley Conference on July 7, 2015 in Sun Valley, Idaho.
The 1.3 million shares sold represents about 0.8 percent of Tesla's outstanding shares as of December 31.
Electric-car maker Tesla (NASDAQ:TSLA) priced its concurrent stock and convertible note offerings last night, and the total capital raised came in at $1.2 billion, slightly higher than the $1.15 billion that Tesla had previously expected even after a 15% underwriter option. Curiously, Musk has increased his own personal borrowing capacity by $100 million to $624 million total and Musk's largest lender, Morgan Stanley, is also Tesla's eight largest shareholder. The company had planned on selling about $750 million in debt.
The Model 3, a $35,000 all-electric sedan aimed at the mass market, is the linchpin of the company's expansion goals, which include ramping up production to a rate of half a million vehicles by the end of next year.