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Tesla Stock Sale Nets Electric Carmaker $738 Million In Capital

/ CBS San Francisco

PALO ALTO (CBS SF) -- Tesla raised a whopping $738 million in a recent stock sale, netting the electric carmaker more than $200 million more than they had estimated.

According to an SEC filing, Tesla estimated the net proceeds from the offering at $738.3 million after deducting underwriting discounts, commissions, and other expenses.

CEO Elon Musk announced that he was planning to get in on the action with a $20 million purchase of shares.

Wall Street had been expecting the move after Musk announced during a second quarter earnings call that raising capital for the company would be valuable "as a risk reduction measure."

Palo Alto-based Tesla will begin shipping the Model X SUV, its third vehicle, in early 2016.

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

First published on August 23, 2015 / 3:03 PM PDT

© 2015 CBS Broadcasting Inc. All Rights Reserved.

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