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Tesla wants to raise nearly $2 billion to support Model 3 launch

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Faced with overwhelming demand for the upcoming Model 3, Tesla intends to use the net proceeds from a registered public offering of about $2 billion USD of common stock to accelerate production.

This includes about $1.4 billion USD of shares with the remaining shares to be sold by Tesla CEO Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options.

The Tesla Model 3 is scheduled to go on sale in late 2017. The plan is to increase annual production to 500,000 units by 2018 and one million units by 2020.