Tesla Motors is selling $500 million in additional stock, and CEO Elon Musk says he’ll be one of the buyers.
Tesla announced the new offering Thursday, saying it would use the proceeds to fund some of its major and costly initiatives. Musk said he intends to purchase $20 million of the common stock at the offering price, which has yet to be set.
Tesla shares are up 7% for far this year, but they’ve hit a rough patch in recent weeks on concerns about the company’s performance. Shares are off 12% since it cut its guidance on August 5 for how many cars it expects to build this year.
The company also announced it had burned about $360 million in its cash reserves in the quarter due partly to the ramp-up cost of building its new SUV, the Model X, which is due to go on sale in September.
Shares of Tesla were slightly higher in pre-market trading following the announcement.