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NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Tesla Inc Report  shares are higher 0.63% to $212.50 in Thursday's pre-market trading session as the company plans to sell $2 billion in stock in an equity offering to ramp up output of the Model 3 sedan. 

The stock is changing direction from falling yesterday immediately after the offering announcement. 

According to a regulatory filing filed on Wednesday, the company is selling 6.8 million shares, which amounts to around $1.4 billion at its current price. As part of the offering, CEO Elon Musk is selling about 2.8 million shares, or around $600 million to cover tax obligations.

The electric car maker is planning to begin "volume production and delivery" of the Model 3 in late 2017, the SEC filing noted.

The net proceeds of the sale will go towards Tesla's goal to build Model S, Model X and Model 3 vehicles at the rate of 500,000 a year by the end of 2018, which is two years ahead of earlier estimates.

One of the lead bookrunners on the $2 billion secondary offering is Goldman Sachs.

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All of this came just hours after Goldman Sachs boosted its rating on the stock Wednesday morning to "buy" from "neutral," saying Tesla will need to raise around $1 billion from capital markets to be able to fuel its expansion. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+. 

Tesla's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TSLA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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