Tesla hopes to raise $500 million to grow business in public offering

MarketsAssociated Press

Tesla Motors hopes to raise around $500 million in a new stock offering that comes as the electric car maker prepares to roll out a new SUV.

Tesla said Thursday that it will offer 2.1 million shares and expects net proceeds of $492.6 million. Tesla could make up to $566.5 million if the underwriters exercise their option to buy additional shares.

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Tesla CEO Elon Musk intends to purchase $20 million worth of stock.

Tesla shares rose 3 percent to $245.40 in morning trading.

Tesla says it needs the cash to accelerate the growth of its business. Tesla's third vehicle, the Model X SUV, goes on sale in a few weeks. The company is also working on a lower-cost electric car and is building a $5 billion battery factory in Nevada.