Tesla on Wednesday announced plans to raise about $1.15 billion as it prepares to introduce its first mass-market vehicle.

The electric vehicle maker said it would offer $250 million of common along with $750 million in convertible senior notes due in 2022. The underwriters of the offerings will be able to purchase an additional 15 percent of each for 30 days, and CEO Elon Musk plans to purchase $25 million of the common stock.

"Tesla intends to use the net proceeds from the offerings to strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3, as well as for general corporate purposes," the company said in a statement.

The Model 3, unveiled nearly one year ago, will cost about half the price of Tesla's current electric vehicle offerings, the Model S and Model X. The company received more than 300,000 pre-orders for the new car and prompted Musk to shift his 500,000-vehicle annual production goal up from 2020 to 2018.

(Image credit: Tesla)

Production is expected to begin in July. Tesla last year sold some $1.4 billion in stock as it scaled up its vehicle production.

Tesla reported a $121 million loss for the fourth quarter of 2016 — after reporting a profit in the previous quarter — but officials noted that the loss was less than half the level in late 2015.