Electric automaker Tesla on Thursday announced plans to offer $2 billion in common stock, and CEO Elon Musk has indicated he will buy as much as $10 million, or about 13,000 shares, according to a company filing.
The stock price for the Palo Alto-based company dropped about 5% in pre-market trading after the announcement, CNBC reported. Wednesday's closing price was $767.29.
Tesla said it plans to use the proceeds from the offering "to further strengthen its balance sheet, as well as for general corporate purposes," CNBC reported.
Tesla board member and Oracle co-founder Larry Ellison also will purchase about $1 million of the company's stock, or about 1,300 shares, according to the filing.
Tesla stock is still up 109%, 219% and 135% over the last three, six and 12 months, respectively, CNBC reported. At one point, earlier this month, the share price reached as high as $968.99.