Founder Elon Musk is taking full-charge at a company he started that he refuses to see become history. Tesla Motors announced today that its board has approved $40 million in convertible debt financing. Musk said that most of the new convertible debt financing comes from Tesla’s current major investors.
“Forty million is significantly more than we need,” Musk said in a statement. “However, the board, investors and I felt it was important to have significant cash reserves.”
Last week Elon Musk said that Tesla was close to securing new financing to increase its cash that had dropped to $9 million.
Most of the new financing will be used to complete production of more than 1,200 Tesla Roadsters of which only 50 have been delivered. No word on whether this will speed up development time on the Tesla Model S Sedan which was delayed last month.