Tesla prices second stock offering at $767 apiece

Daniel Fowler
February 17, 2020

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.

The electric car-maker's US$2 billion secondary offering priced at US$767 per share, 4.60 per cent below Thursday's closing price. The stock rally even allowed the company to break the $150 billion threshold earlier in February, before the prices settled to around $800 per share on Friday.

Shares closed up another 5 per cent.

Tesla warned in the filing that its shares have gone as high as $968.99 per share to as a low of $176.99 during the past 52 weeks.

Facebook experiments with the application to document your hobbies
Apart from photos, users are also allowed to make videos of their projects and then share them with their friends and family. For now, Hobbi has not reached the desired set of audience, given that it is in an experimental stage.

CEO Elon Musk will purchase up to $10 million in shares in the offering, while Oracle co-founder and Tesla board member Larry Ellison will buy up to $1 million worth of Tesla shares, according to the securities filing.

The company said it plans to use the net proceeds "to further strengthen its balance sheet, as well as for general corporate purposes". As recently as last month, Musk said: "It doesn't make sense to raise money". The stocks are up 92percent this year through Thursday. An institutional investor asked that given the recent run in the share price, why not raise capital now and substantially accelerate the growth in production?

At the time of Thursday's announcement, Tesla shares had risen more than 35% since the January 29 earnings announcement, perhaps being too tempting for an opportunity to ignore. "This is at least the second time Musk has said on an earnings call that raising capital is not happening and then shortly thereafter Tesla raises capital".

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER