Tesla Motors on Sunday said it has finalized $40 million in convertible debt financing, which it will use to accelerate production of its Roadster electric sports car.

The company last week said it was seeking money to overcome a low-cash position of $9 million. Elon Musk, its chairman, CEO, and product architect, also indicated that Tesla had tried, but failed, to raise $100 million.

"Forty million is significantly more than we need, Musk said in a statement. "However, the board, investors, and I felt it was important to have significant cash reserves."

Tesla has shipped about 50 of the $109,000 Roadsters, but there is a waiting list of 1,200 people who have placed deposits.

For further information: CNET