Tesla raises almost $1.4B after higher than expected investor demand

In terms of the common stock offering, it was priced at $262 and Tesla ended up selling 1.33 million shares, compared to the 969,000 it initially planned to sell.

American automaker Tesla has raised about $1.2 billion through the sale of common stock and convertible debt stock.

Goldman, Sachs & Co., Deutsche Bank Securities, Citigroup and Morgan Stanley are acting as lead joint book-running managers for the offering, with Barclays, BofA Merrill Lynch and Credit Suisse acting as additional book-running managers.

The 1.3 million shares sold represents about 0.8 percent of Tesla's outstanding shares as of December 31.

Tesla also hasn't provided an update on the number of reservations taken for the Model 3, which is believed have sold out for the first year; advance reservations totaled 373,000.

"This is really a question of what's the risk tolerance of the company, or how close to the edge do we want to go", Musk said. Tesla has already sent out emails to inform prospective customers and those who had expressed interest in these variants.

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Alongside the offering of the common shares, Tesla is also offering convertible senior notes due in 2022, to raise $850 million, a separate filing said.

While Tesla hasn't issued any updated figures as of late, it's widely believed that the total number of Model 3 reservations now falls somewhere in the 390,00-400,000 range.

The Model 3, a $35,000 all-electric sedan aimed at the mass market, is the linchpin of the company's expansion goals, which include ramping up production to a rate of half a million vehicles by the end of next year. You will just have to walk in and walk out with your brand spanking new Model 3 in just five minutes.

Tesla has upped it's capital raise from $1.15B to $1.38B after investors indicated higher demand for the offering.

If the company manages to do what it says, then it will surely provide a much more convenient process for consumers. The company is preparing to roll out a new model this year.

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