Electric carmaker Tesla Motors is set to raise $1.6bn through convertible senior notes in a registered public offering for business expansion.
The American carmaker will use the amount to expand its business; develop and manufacture its Gen III mass market vehicle; develop the Tesla Gigafactory; and other general corporate purposes.
Tesla has earlier announced that it will establish the Gigafactory, in collaboration with its battery manufacturing partners.
Tesla and its partners plan to invest around $4bn to $5bn in the Gigafactory through 2020, of which Tesla will alone invest around $2bn.
The company is considering four locations in Nevada, Arizona, New Mexico and Texas for the new plant. Finished battery packs from the Gigafactory will be shipped to Fremont, California for vehicle assembly.
The Gigafactory is expected to produce more lithium ion batteries annually by 2020 compared to the batteries that are produced globally in 2013.
Image: Tesla Motors will raise $1.6bn for business expansion. Photo: Courtesy of Tesla Motors Inc.
