Tesla Motors announced on Wednesday an underwritten registered public offering of about $2 billion shares of its common stock to accelerate the ramp of the Model 3.

The electric automaker is offering about $1.4 billion in shares. CEO Elon Musk will sell the remaining shares to "cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options."

Shares of Tesla were down more than 2 percent in after-hours trading.



In a Wednesday note to clients, Goldman Sachs estimated that Tesla only needed to raise $1 billion to fund accelerated Model 3 production. The firm also said it sees a 22 percent upside to its six-month price target of $250.

Goldman is one of the leading underwriters on the stock sale.