Photo of Model 3 courtesy of Tesla.

Photo of Model 3 courtesy of Tesla.

Tesla has sold $1.2 billion in common shares and convertible senior notes to support the roll-out of the Model 3, the Palo Alto company announced.

Tesla has sold $250 million worth of common stock and $850 million through the notes that are due in 2022. In addition, Tesla granted the underwriters a 30-day option to purchase up to an additional 15% of each offering. Elon Musk, Tesla's CEO, purchased about $25 million of common stock, the company said in a filing.

The Model 3 is a $35,000 battery-electric sedan that should provide 250 miles of driving range. Tesla said it will begin delivering the cars by the middle to late 2018. Prospective buyers have reserved 373,000 Model 3s.

Originally posted on Automotive Fleet