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UPDATE: Tesla Plans Stock Sale to Raise $643 Million
Tesla Motors Inc. tells federal regulators it intends to raise $643 million by selling 2.7 million shares at $242 per share.
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Tesla Motors Inc. tells federal regulators it intends to raise $643 million by selling 2.7 million shares at $242 per share. The company said yesterday it would sell 2.1 million shares.
CEO Elon Musk, who owns 22.3% of the company, plans to buy $20 million of the new offering. Underwriters Bank of America, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo will have the option to buy as many as 300,000 additional shares.
Tesla burned through $359 million in cash in April-June as it prepared to launch the Model X electric crossover vehicle this autumn. The company said last week it might sell shares to replenish its cash reserve.
Proceeds from the stock sale will be used to bolster the company's new stationary electrical storage business, develop the Model 3 electric sedan due in 2017 and continue construction of its giant battery "gigafactory" in Nevada, according to the filing.
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