Following reports of its hefty cash burn, Tesla (TSLA) has announced that it will sell 2.1 million shares in order to raise around $500 million. The electric car maker will use the funds to expand its retail operations and charging network as well as to develop its new energy storage business. CEO Elon Musk is leading by example. The company’s largest shareholder has indicated that he plans to buy $20 million worth of shares and has been candid about the fact that he doesn’t expect the company to become profitable until 2020. According to reports, Musk currently owns around 27 percent of current shares in Tesla. The car maker’s ability to turn a profit has been an ongoing question for investors. The company reported a second quarter loss earlier this month which had almost tripled from last year’s numbers. Revenue climbed 24 percent to $955 million but was offset by a net loss of $184 million.
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