Tesla has a plethora of projects in the pipeline – the Tesla Semi, Model Y, the Tesla Pickup – and making these real will require vast sums of cash – as much as $2.5 billion in capital expenditures this year, according to Bloomberg. So it wasn’t much of a surprise when the company announced last week that it would raise around $2.3 billion in new capital, then upped the ante to $2.7 billion the following day.

Now Tesla has confirmed that it sold about $860 million in shares and raised $1.84 billion in convertible notes. Elon Musk put his big money where his big mouth is, adding to his stock holdings by some $25 million.

Wall Street approved of the capital raise – TSLA stock surged on the news, though it later gave back most of the gains, and is still far from recovering the ground it lost following the Q1 earnings report, when the company announced a loss of some $702 million.

“We view this as a clear net positive for Tesla,” said Dan Ives, an analyst at Wedbush Securities. The California carmaker needs to “take its medicine and clear the air of the very real investor worries.”

“Tesla can’t yet rely on cash from operations to fund its deeper penetration into autonomous-driving technology, advanced chips, insurance and China,” said Bloomberg Senior Autos Analyst Kevin Tynan. “Tesla’s 31% delivery decline in Q1 vs Q4 signaled that US demand isn’t sustainable at the elevated second-half levels, while its international rollout is just beginning.”

Tesla maintains its forecast of 90,000 to 100,000 deliveries in the second quarter. For the full year, it expects to deliver 360,000 to 400,000 vehicles, which would represent year-over-year growth of 45% to 65%.

Sources: Tesla, Bloomberg, Motley Fool, Electrek