Tesla raises $40 million funding

The board of directors of Tesla Motors Inc., the leading electric vehicle manufacturer, has approved $40 million in convertible debt financing, based on commitments from almost all current major investors. The round will also be open to smaller current investors.

The financing will be used primarily to accelerate manufacturing of the Tesla Roadster, an all-electric, high performance sports car. In addition, the funds will be used to expand Tesla’s electric powertrain supply business and continue future product development.

“Forty million is significantly more than we need,” said Elon Musk, Tesla Chairman, CEO and Product Architect. “However, the board, investors and I felt it was important to have significant cash reserves.”

Tesla has delivered more than 50 Roadsters to customers so far and is now in regular production at a rate of ten cars per week, rising to thirty cars per week early next year. More than 1,200 people have placed a deposit for the Roadster, on sale now in the United States and Europe. The Roadster’s 2008 model year production run is sold out, and the company is currently taking orders for the 2009 model year.