Tesla said Wednesday it is offering $1.6 billion in convertible senior notes in an underwritten registered public offering.
The company plans to use the proceeds from the sale to fund its "Gigafactory and the development of its 'Gen III'" mass market vehicle, the company said in a press release.
Tesla plans to build its Gigafactory on anywhere from 500-1,000 acres of land in New Mexico, Arizona, Nevada or Texas, according to the company's 10-K. The company expects the factory to run at full capacity in about 2020, employing 6,500 people and producing around 500,000 cars.
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Executives predict the Gigafactory will cut the cost of producing the lithium ion batteries that power its cars by 30 percent.