Tesla will raise a little more than $1 billion to fund the launch of its upcoming Model 3 electric car and to strengthen its balance sheet, the company announced today. Last year, Tesla made a similar stock offering to fund Model 3 production, although without the convertible notes, and another back in 2015.

$250 million will come from a secondary stock offering, plus $750 million in convertible senior notes (basically a loan), as well as options for the underwriters to purchase an additional 15 percent of each offering.

Tesla CEO Elon Musk will personally purchase $25 million in Tesla common stock as a part of the deal. The convertible notes will change into cash or shares of Tesla stock (at the company’s election) in 2022, with interest rates and other terms to be determined.

The Tesla Model 3 was unveiled in March and is the first "affordable" Tesla car, priced around $35,000. Tesla claims it will go more than 215 miles on a full charge, and the success or failure of the Model 3 will likely determine the future of the company. The first deliveries of the car are expected late this year, with volume production beginning in 2018.