Shares Tesla Motors (NASDAQ:TSLA) surged about 6% in Thursday morning trading after the company said it will issue new stock and convertible notes to raise additional capital.
The luxury electric car maker will issue 2.7 million shares of common stock. Co-founder and CEO Elon Musk will purchase $100 million in new shares from the company. Additionally, Tesla will issue convertible notes valued at $450 million, USA TODAY noted.
Together, the new stock and notes are expected to raise $830 million for the company. The company indicated that proceeds from the issuance will be used both for general purposes and to help repay the $465 million in loans it received from the Department of Energy.
Tesla said Musk will purchase $45 million in new shares during a public offering. He will acquire an additional $55 million in shares at a private placement.
Recently, Tesla announced that it would repay its federal loans five years ahead of schedule.
Last month, the company said it would post its first quarterly profit due to higher-than-expected sales of its Model S cars.