Tesla Inc. said on Thursday it plans to raise $2 billon by selling shares through a public offering.

CEO Elon Musk will buy up to $10 million in shares in the offering, while board member and Oracle co-founder Larry Ellison will purchase up to $1 million worth Tesla shares.

The underwriters will get an option to buy up to $300 million in additional shares.

The electric-car maker said it plans to use the proceeds from the offering to strengthen its balance sheet and for general corporate purposes.

Shares of Tesla were down nearly 5 percent to $730.30 in premarket trading Thursday.