That's 20 percent more than originally planned.

Elon Musk and Tesla have raised $1.2 billion in preparation of the launch the new Model 3. The company announced Wednesday that it would be selling new stock and convertible securities in preparation for the debut of the new sedan, and that numbers would total more than $1 billion. The company exceeded expectations by roughly 20 percent.

After the announcement was made earlier in the week, the Palo Alto-based automaker saw its stock rise 2.5 percent to close Thursday at $262.05, a 0.3 percent increase. The company sold 1.3 million common shares at $262 a piece to raise $350 million, and raised another $850 million through convertible senior notes.

2018 Tesla Model 3

The 1.3 million in shares sold represent about 0.8 percent of Tesla’s total outstanding shares, as recently as December 31. Elon Musk meanwhile, the company’s CEO, still holds a majority share of the company at about 21 percent.

When it does go on sale, the Model 3 is expected to have a starting price of around $35,000, which would make it the most affordable option in the lineup. The company reportedly has logged more than 325,000 pre-orders since its debut, and has a plan in place to make it the "most American" car in the country.

Already we’ve seen Tesla testing its new Model 3 on public roads. Last week, a video caught an early prototype in broad daylight out on the streets of California, and gives us our clearest look yet at the upcoming EV. Production is expected to begin in July, with deliveries taking place later in the year. Tesla hopes to produce as many as 5,000 cars per week sometime in the fourth quarter of the year, and 10,000 cars per week "at some point in 2018."

Source: Reuters

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Gallery: 2018 Tesla Model 3