Tesla increases capital raise to $2.7 billion, Musk purchases more stock

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Tesla Inc on Friday was set to boost up to $2.7 billion in a record-setting capital raising for the electric automaker, as investors scooped up a mix of new stock and convertible notes that are going to recharge the company’s cash-depleted balance sheet.

The company stated in a filing that it had boosted its offer to 3.1 million shares, increasing to 3.5 million including a tranche for underwriting banks, from an initially planned 2.7 million, costing at $243 per share.

The filing also revealed it would place convertible debt worth $1.6 billion, up from an initial planned $1.35 billion. That all pointed to buoyant interest in the offering and shares in the company increased 2.5 percent in morning trading.

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