Tesla announced a new offering of 2.7 million shares of common stock today, along with $450 million worth in convertible senior notes.

Tesla plans to use the aggregate gross proceeds of the offerings, which they predict will be around $830 million, to pay back the US Department of Energy. Timing is also crucial with this announcement, as Tesla stock has nearly doubled in value since early April.

Tesla CEO Elon Musk also announced that he will personally be purchasing $45 million in common stock offering, and approximately $55 million directly from Tesla. Currently, Musk owns about 27 million Tesla shares, or 23.6% of the outstanding stock.

In connection with the note offerings, Tesla also announced that it will be entering into convertible note hedge transactions and warrant transactions which are meant to prevent dilution up to %100 over the offering stock price.

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By Stephen Elmer