Tesla Motors is pricing an upcoming offering of its stock at $242 per share, or slightly below the most recent closing price for the electric car maker.

Shares of the company are climbing in early morning trading after it detailed in a regulatory filing an offering it expects to generate about $642 million in proceeds after expenses.

Tesla Motors Inc. will offer nearly 2.7 million shares or more than 3 million if underwriters exercise their option to buy more shares. CEO Elon Musk plans to buy $20 million worth of stock.

The Palo Alto, California, automaker will begin shipping its third vehicle, the Model X SUV, in a few weeks. It’s also investing heavily in a $5 billion battery factory in Nevada, which will make batteries for both its cars and its Tesla Energy home battery business. The factory is set to start production in the first quarter of next year.

Tesla said it needs the cash to further development of the Model 3, a lower-cost electric car due out in 2017. The auto industry typically spends about $1 billion developing new cars and putting them on the market.

Tesla is also rapidly expanding its network of Superchargers, which can add 170 miles to a Model S battery in 30 minutes. Tesla told shareholders this month that it now has 487 Supercharger stations globally and is opening one nearly every 24 hours.

All that doesn’t come cheap. Tesla obtained a credit line of up to $750 million in June, but it spent $359 million during the second quarter. Its cash total of $1.2 billion was down from $2.7 billion a year ago.

Tesla, which was founded in 2003, has never made an annual profit under U.S. accounting standards. Musk said earlier this year that he expects Tesla to start making money in 2020, when the Model 3 is in full production.

Shares of Tesla are up $1.99 to $244.50 in premarket trading Friday morning.