14 Aug Tesla Will Raise $500M In A Public Offering With Participation From Musk
In a prospectus filed today by the company, Tesla announced the intention to sell up to 2,100,000 shares of common stock. Underwriters will also receive a 30-day option to purchase up to 315,000 additional shares.
Using yesterday’s closing price of $238.17 per share, the company expects net proceeds from the offering to be around $492.6 million, or $566.5 million if the underwriters exercise their option to purchase additional shares in full.
The stock jumped about 2 percent today to around $245 per share after this announcement, which is a sign that investors are more confident in a well-capitalized Tesla. However, this share price is still about 8 percent lower than the three-month average for the stock, which came after disappointing production estimates last week during the company’s Q2 earnings call.
Underwriters and book-running managers in the deal include Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley, J.P Morgan, Deutsche Bank Securities and Wells Fargo Securities.
Notably, the offering has said that Tesla CEO Elon Musk has indicated interest in purchasing 83,974 shares for an aggregate price of about $20 million.