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.

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