SAN FRANCISCO (Reuters) – Tesla Inc will raise up to $2.3 billion in new capital, renouncing what Elon Musk called a “Spartan diet” and easing Wall Street concerns about the money-losing company’s ability to overcome a drop in sales and build new product lines.

FILE PHOTO: A visitor inspects a Tesla Model X electric vehicle at Brussels Motor Show, Belgium, January 18, 2019. REUTERS/Francois Lenoir

Tesla’s plan to issue debt and convertible shares comes after the company repeatedly pushed back forecasts for turning a profit. The company faces expensive challenges, including launching production in China, overhauling its U.S. retail and service operations and developing new models, including the high-volume Model Y SUV and a Semi commercial truck.

Many analysts had calculated that Tesla – which burned