Share sale for electric car maker Tesla to raise $234 million, more than expected

PALO ALTO, Calif.― Electric car maker Tesla Motors said a share sale to raise funds for the development of its Model X SUV has been priced at $28.76, the stock’s last closing price and higher than initially anticipated.

Tesla will sell 5.3 million shares in an offering that was first announced on May 25 and was expected to price at $26.

The sale will now bring in a total of $234.35 million for developing Model X, which is a crossover vehicle based on the platform of Tesla’s Model S sedan.

The company also said its chief executive will buy fewer than previously announced shares in a private offering, while an affiliate of Daimler AG will buy a little more than first announced.

CEO Elon Musk will now buy 1.42 million shares, down from 1.5 million, and Daimler affiliate Blackstar Investco will buy 637,475 shares at the stock’s last closing price.

Tesla shares rose 6 percent to $30.59 in pre-market trade.