SAN FRANCISCO—Tesla Inc. will raise up to $2.3 billion in new capital, renouncing what Elon Musk called a “Spartan diet” and easing Wall Street concerns about the money-losing company’s ability to overcome a drop in sales and build new product lines.
Tesla’s plan to issue debt and convertible shares comes after the company repeatedly pushed back forecasts for turning a profit. It also is confronting expensive challenges, including launching production in China, overhauling its U.S. retail and service operations and preparing new models, including the high-volume Model Y SUV and a Semi commercial truck.
