Tesla announced an additional issue of shares worth about $2 billion. the offering Price will be around $767,29 per share.
the company’s Founder Elon Musk and Board member Larry Ellison will participate in the placement: they will buy the securities for $10 million and $1 million respectively. The company will offer approximately 2.65 million Tesla shares via underwriters Goldman Sachs and Morgan Stanley, with the expected proceeds of the offering to $ 2.3 billion.
Proceeds from placement of shares the money will go to strengthen the fiscal balance and corporate needs, says the company.
Wedbush Analyst Dan Ives praised the decision, noting in comments to CNBC that the skeptics on wall street is now even harder to speak out against Tesla. Ives noted that this was a “wise strategic move” that allows you to exclude any dramatic assumptions about Tesla, related to the lack of money.
Earlier, Elon Musk has repeatedly assured investors that Tesla will need to attract more funds for these expensive initiatives, including the production of new car models, increased production in China and construction of first European plant.
“it makes No sense to collect money,” Musk said during a telephone conversation on January 29, when an investor asked why Tesla does not use the favorable price on the stock to speed up production. Musk said that the company will generate sufficient funds to Finance ambitious expansion plans.
Musk also said that Tesla needs to produce more batteries to increase the production of electric vehicles, adding that some projects, such as the program for the production of electric tractors can’t be continued without the improvements to the batteries.
“the Recent sharp jump, including a delay in the supply of cars from the new plant in China because of the epidemic of the coronavirus, review, Model X is likely to affect management’s decision about placing of new shares,” said Garrett Nelson (James Nelson), an analyst with CFRA.
Tesla in may attracted about $ 2.3 billion on the development of new models and the construction of a plant in China. Among galusha plans car company, the SUV Model Y and commercial Semi truck, the launch of which was delayed due to the lack of production capacity of batteries.
Since the last capital raising, Tesla built a factory in Shanghai, costing $2 billion and introduced a futuristic pickup Cybertruck. Shanghai plant started to supply vehicles last month.
Tesla’s Shares in premarket fell by 5.8%, to $722,79 per share on the news. YTD quotes Tesla rose of 131.6%. Over the past 12 months the company’s capitalization grew by 19%, while the stock index Standard & Poor’s 500 rose 23%.