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Tesla said on Wednesday that it plans to raise about $1.15bn in stock and debt offerings aimed at bolstering its balance sheet.

The electric car maker said that it plans to offer $250m in stock and $750m in convertible senior notes due in 2022. Underwriters were also granted an option to purchase an additional 15 per cent of each offering.

As part of the deal, chief executive Elon Musk will buy $25m in stock.

Tesla said the proceeds would be used to “strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of the Model 3, as well as for general corporate purposes”.

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