Economy

Tesla prices secondary stock offering at discounted $767 a share

Tesla prices secondary stock offering at discounted $767 a share”

Tesla CEO Elon Musk may finally get his huge paycheck by mid-spring if shares of the electric carmaker stay stable and the company manages to keep its average market cap above $100 billion.

Tesla will sell about US$2 billion of common stock to help fund capital expenditures, the electric-vehicle maker said in the filing.

Just last month, Musk said quote: "it doesn't make sense to raise money".

The electric automaker said Friday it has priced its secondary stock offering at $767 a share - a 4.6 percent discount on its Thursday closing price, but almost 80 percent higher than it was at the start the year.

That demand continued to surge Thursday, even though issuing additional company shares can dilute the value of those already on the market.

"Musk also said Tesla had no acquisition targets so it is possible that has abruptly changed, but we think he wants to capitalize on the stock's recent upward explosion and we can't blame him".

Tesla founder and chief executive Elon Musk plans to buy $10 million worth of the newly minted shares, and board member Larry Ellison, founder of Oracle, is interested in buying $1 million worth of the shares, according to the filing.

Tesla's stock is in Ludicrous Mode - and the company just cashed in.

"He is smart to grab cash by selling stock at a sky-high price he might not see six months from now".

The company said it plans to use the net proceeds "to further strengthen its balance sheet, as well as for general corporate purposes".

Tesla raised about $2.3bn in May to start production in China and spend on developing new models, including the high-volume Model Y SUV and a Semi commercial truck, whose launch has been delayed due to a lack of battery production capacity.

Goldman Sachs and Morgan Stanley are the lead underwriters, who have the option to buy an additional 397,500 shares in the offering.



Like this

loading...
loading...

Latest


15 February 2020
Tokyo Olympics have no 'Plan B' for coronavirus, organizers say
The virus has so far claimed the lives of 1,350 people and infected over 60,000 worldwide, with the vast majority of cases reported in mainland China.

15 February 2020
Ireland's Sinn Fein leader blasts rivals
Asked if Fianna Fail would talk to Fine Gael about the formation of a government, Mr Collins said, 'That wasn't really discussed'. The Fianna Fail parliamentary party will meet later but Martin has repeatedly ruled out going into coalition with Sinn Fein.

15 February 2020
BP Announces Plan To Become Net Carbon Zero By 2050
In addition to reaching net-zero for their own company, the second part of BP's goal is to help the world reach net zero. The British company says it is aiming to be a net zero company in its global greenhouse gas emissions by 2050 or sooner.

15 February 2020
Katy Perry talks dealing with negativity
A source told E! "The wedding was supposed to be in September, then December and now early next year. Realizing that they are not being invited, Luke said: "We were in limbo.

15 February 2020
US Navy seizes HUGE Iranian missiles cache in Arabian Sea raid
The terrifying cache included 150 "Dehlavieh" anti-tank guided missiles, which are Iranian-manufactured copies of Russian Kornets. The military said the weapons seized were " identical " to those seized by another USA warship in November.

15 February 2020
Oil prices steady but set for weekly gain on supply cut optimism
However, market sentiment improved as factories in China started to reopen and the government eased its monetary policy. Brent is 3.3% higher for the week, the first increase since the week of January 10.

15 February 2020
Liverpool fans tip Van Dijk to win Player of the Year award
Liverpool will next play against Norwich City in the Premier League on Saturday. The club is reportedly willing to offer a new contract to the Dutch global .

15 February 2020
Half-Life: Alyx release date
The only downside right now is that the Valve Index VR headset continues to be out of stock in most regions. As for the story of the game, the story of the game revolves around stars the popular character Alyx Vance.

15 February 2020
Apple Pay Growth Hints at the Future of Digital Wallets
Apple faces competition in China from QR code-based mobile payment services from Chinese tech giants Alibaba and Tencent. Indeed, according to analysts a year ago , 43% of iPhone users around the world had activated Apple Pay.

15 February 2020
Google brings "Emoji Kitchen" that mixes two Emojis
Now the owners of smartphones will get the opportunity to add items of some emoticons to others. The emoji sticker pack features 40 emoji combinations built by developer Maxence Guegnolle.