NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA - Get Report) are declining 3.33% to $204.13 in after-hours trading on Wednesday after the electric vehicles manufacturer announced an underwritten registered public offering of $2 billion to accelerate Model 3 production.
The company will offer roughly $1.4 billion of shares, Reuters reports.
CEO Elon Musk will sell the remaining $600 million in shares to "cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options."
Tesla has set a 2018 production target of 500,000 vehicles, while the most optimistic analyst estimates that Tesla will produce 340,000 vehicles by then, CNBC notes.
Earlier today, shares surged after Goldman Sachs (GS) upgraded the stock to "buy" from "neutral," contending that the recent 23% drawback in shares has caused the stock to not ""fully capture the company's disruptive potential."
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.