Tesla today launched issues of new shares and debt worth more than $2 billion, with chief executive Elon Musk pitching in $10m as the electric carmaker gave in to Wall Street pressure to bolster its cash reserves. 

Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans.

These plans include the construction of a factory in Shanghai, the upcoming Model Y SUV, and the crucial ramp up of Model 3 sedan production. 

Shares in the Silicon Valley company rose more than 5% on news of the capital raise plan, which follows Musk's hint last week that a fund-raising was imminent after Tesla lost $700m in the first quarter. 

The company said in the filing that it would seek to raise $650m in new shares and $1.35 billion in debt, with underwriters having the option to buy an additional 15% of each offering, potentially raising the proceeds to $2.3 billion. 

In first-quarter results that disappointed many on Wall Street last week, Musk promised the company would deliver a profit again by the third quarter of this year, but the company's huge investments mean it is leaking cash swiftly. 

Tesla expects capital expenditures of $2-2.5 billion this year and about $2.5-3 billion annually for the next two fiscal years. It ended its first quarter with $2.2 billion in cash. 

Analysts said last week that the company would probably seek between $1 billion and $3 billion, and that it would cost significantly more than it would have a year ago, when some on Wall Street were already calling for a capital raise. 

Tesla has raised funds through bank loans, several rounds of equity sales, issued convertible notes, a junk bond sale, securitisation of its vehicle leases and solar asset-backed notes. 

A previous issue of shares in 2017 went at $262 a share, compared to the company's current price of $246.