- Associated Press - Wednesday, May 18, 2016

PALO ALTO, Calif. (AP) - Electric car maker Tesla Motors is selling around $1.4 billion worth of stock to help bring its lower-cost Model 3 to market.

Palo Alto, California-based Tesla offered 6.8 million shares Wednesday. Its shares slid less than 1 percent to $210.60 in after-hours trading.

Analysts had expected the move after Tesla announced this month it wants to produce 500,000 cars per year in 2018, two years earlier than planned.

The company wants to meet strong demand for the Model 3, which goes on sale at the end of 2017. Tesla began taking reservations for the $35,000 car on March 31; more than 373,000 customers have put down a $1,000 deposit.

CEO Elon Musk is selling an additional 2.8 million shares to pay the taxes he will incur after exercising stock options.


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