Elon Musk’s electric vehicle maker Tesla Inc. (TSLA) plans to price its secondary stock offering at $767 a share, according to a published report late Thursday.
Shares of the electric vehicle maker closed at $804 Thursday, up 4.8%.
The company said earlier Thursday that it will raise $2 billion by issuing new common stock, less than two weeks after Musk, its founder and CEO , said it “didn’t make sense” to raise money.
The company will price the offering at $767 a share, Bloomberg reported, citing an unnamed source.
Shares have surged more than 75% since the beginning of the year.
Tesla said it will use the cash to shore up its balance sheet, as well as for “general corporate purposes.” Tesla said Musk will take up around $10 million worth of stock from the sale, while board member Larry Ellison will purchase $1 million. The underwriting team, lead by Goldman Sachs (GS), will have the option to buy an additional $300 million in shares, Tesla said.
“The aggregate gross proceeds of the offering, assuming full exercise by the underwriters of their option to purchase additional securities, would be approximately $2.3 billion before discounts and expenses,” Tesla said in a statement. “Tesla intends to use the net proceeds from the offering to further strengthen its balance sheet, as well as for general corporate purposes.”