Tesla Shares Rise 3% After Company Offers $250 Million In Shares, $750 Million In Convertible Notes

Tesla Inc. shares rose 3% late Wednesday after the company announced offerings of $250 million of common stock and $750 million in convertible senior notes due in 2022. Tesla CEO Elon Musk will buy $25 million of common stock, the company said. Tesla intends to use the proceeds "to 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," the company said. Tesla shares fell 0.9% in the regular session. In a conference call last month with analysts after quarterly results, Musk said it would make sense to raise capital to reduce risk.