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…

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