After the market closed, Tesla (TSLA) announcing an underwritten registered public offering of about $2B of common stock, with Tesla offering about $1.4B of shares with the remaining shares to be sold by Tesla CEO Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5M stock options. Tesla noted that on a net basis, Musk will increase his overall Tesla shareholdings through these transactions.

WHAT’S NEW: The electric car maker said it intends to use the net proceeds from this offering to accelerate the ramp of Model 3 due to the “overwhelming demand” it has received for its Model 3 sedan. As noted in the company’s first quarter shareholder letter, Tesla intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate its 500,000 unit build plan from 2020 to 2018. Proceeds of the offering may be also used for working capital and other general corporate purposes.

WHAT’S NOTABLE: Goldman Sachs analyst Patrick Archambault upgraded Tesla to Buy from Neutral before the market opened, citing expectations that “seem more grounded” with Tesla shares down 23% since the unveiling of the Model 3, and an attractive risk/reward at current share levels. Additionally, Archambault noted that Tesla had publicly stated it might look to raise capital and Goldman’s “detailed capex analysis [pointed] to capital needs of $1B.”

PRICE ACTION: Shares of Tesla, which were higher by more than 3% intraday after the Goldman upgrade, are trading down over 2% in the after-hours.