Tesla (TSLA) seeks to finance a plan to expand production of its electric vehicles to 500,000 a year by 2018.

The shares were priced at $215 by lead managers Morgan Stanley (MS), Goldman Sachs Group (GS), Deutsche Bank AG (DB), Citigroup (C) and Bank of America Merrill Lynch (BAC), IFR said.

The pricing is lower than its previous sale price of $242 in August 2015 and below a year high of $286.65 hit in July 2015.

The Palo Alto, California-based carmaker said on Wednesday it planned to sell up to $1.7 billion in new shares to fund its operations, and said Chief Executive Elon Musk would sell 2.8 million of his own shares, mainly to pay taxes related to exercising vested stock options.

Tesla’s stock ended up 1.9% at $215.21 on Thursday, despite the announced plan to sell more stock at a price below previous share sale levels.

Tesla shares are down 10.3% this year.

The proceeds from the latest stock offering will be used mainly to pay for $2.25 billion in capital investments Musk has said will be needed this year to prepare for high volume production of the Model 3. As of March 31, Tesla had $1.44 billion in cash and cash equivalents.

The company reported a net loss of $282.3 million for the first quarter, and said in its prospectus it must “deliver significant cost reductions” to avoid future losses.

Tesla previously has raised more than $4.5 billion in debt and equity offerings over the past six years. Since it raised$226 million in an initial public offering in June 2010, Tesla has gone back to the capital markets several times.

Tesla said it has 373,000 reservations from customers who want the Model 3 sedan, which will be a smaller, less expensive companion to the current Model S sedan and Model X sport utility vehicle.