By Steve Liss/ReutersA fleetwood, a new carmaker that’s been developing and making cars in a big way, has announced it’s raised $250 million in a Series B round led by Tesla.
The investment was announced by CEO David Hahn in a statement on Monday, which included a statement that said the deal would “help us continue to innovate and expand our portfolio of electric vehicles.”
Hahn was responding to a question from The Wall Street Journal about whether the Series B funding would lead to new investment, or new vehicle production.
Hahn said in a press release that the investment would be used to “strengthen our core brand, build on the great work we’ve done to launch and scale our fleet, and invest in the development and commercialization of electric, autonomous and connected vehicles.”
In other words, the company is going to build its own fleet of cars, which are basically autonomous trucks.
Tesla already has a fleet of its own electric trucks in its Palo Alto, California, factory, but the Model S and Model X are currently available only in the U.S. and Canada.
The company has been trying to ramp up production of its Model 3 electric sedan, and plans to begin deliveries of the Model X crossover later this year.
Hennens announcement on Monday said the Series A round would help “create more opportunities for investors, accelerate our business, and accelerate our growth.”
Tesla shares have surged more than 400% since the company announced it was building a factory in Mexico in September.
Tesla stock was up nearly 200% over the past year.
A new car company has $250M Series A funding led by a Tesla stock-holder.
This is a big deal.
pic.twitter.com/qDZrZlxkJy— David H. Bohn (@davidhahn) December 11, 2017This new funding round, which also includes $250m from investors including Andreessen Horowitz, Andreessen Media, Sequoia Capital and others, will “provide the necessary resources to accelerate the rapid adoption of electric and connected vehicle technology and accelerate the growth of the company and its operations,” Hahn said.
The Series A investment will be used for capital expenditures, including expanding our production capacity, hiring employees and investing in new product and technology innovation, he said.