Tesla Inc. raised $2.35 billion through debt and stock offerings that expanded from the company’s initial plans, helping to put some near-term liquidity fears to rest.
The electric-car maker raised $750 million selling common stock and $1.6 billion from convertible bonds, up from originally offering $650 million and $1.35 billion. The capital raise sparked a relief rally in both Tesla’s stock and bonds, which had reflected investor worry over whether the company can be sustainably profitable.
“The raise should refute lingering concerns about TSLA’s ability to access capital markets,” Ben Kallo, a Robert W. Baird & Co. analyst who rates Tesla the equivalent of buy, said in a note Friday. “Surplus cash should help alleviate investor concerns around liquidity.”