SAN CARLOS (CBS/AP) – Electric car upstart Tesla Motors Inc. said it will sell 5.3 million additional shares of stock for $28.76 in a secondary public offering.

In addition to the shares in the public offering, CEO and co-founder Elon Musk will buy 1.4 million shares in a private sale at the same price. Blackstar Investco LLC, an affiliate of Daimler AG, also will buy 637,475 shares directly from Tesla.

The combined sales will raise about $211 million.

The company will use most of the money to pay for development of its Model X crossover vehicle. Currently sells only one model, a $109,000 roadster.

The sale follows its initial public offering from a year ago, when its stock sold for $17.

The news pushed Tesla shares up $1.39, or nearly 5 percent, to $30.15 in morning trading.

(Copyright 2011 by CBSSan Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)


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