Tesla Rallies on Plan to Raise $2 Billion to Counter Cash Drain

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Wedbush’s discusses Tesla Inc.’s plans to raise about $2 billion in debt and stock offerings. (Source: Bloomberg)

Tesla Inc. plans to raise about $2 billion through debt and stock offerings, after Elon Musk overestimated the ability of the Model 3 sedan to generate enough cash for the company to be self-sustaining.

The electric-car maker filed Thursday to sell $1.35 billion in convertible notes and about $650 million in shares. Tesla stock, which had plunged 30 percent this year, rose 2 percent to $238.65 at 10:09 a.m. in New York, and its bonds advancedBloomberg Terminal.