Tesla seeks up to $214M in new stock sales
Electric vehicle company Tesla Motors Inc. on Wednesday announced a follow-on offering of 5.3 million shares of its common stock in which it could raise up to $158.5 million.
In a private placement running concurrently with the public offering, Elon Musk, co-founder and CEO of Palo Alto-based Tesla, plans to purchase 1.5 million of the shares. Blackstar Investco LLC, an affiliate of Daimler AG, plans to purchase about 644,475 shares.
At the expected $26 offer price, the private placement would raise $55.8 million, bringing the total raised up to $214 million.
The company has granted the underwriter a 30-day option to purchase up to an additional 795,000 shares of common stock.
Tesla said it intends to use a portion of the net proceeds to fund the development of its Model X crossover vehicle.
The company had 95.6 million shares outstanding as of April 29.
Goldman, Sachs & Co. is acting as sole book-running manager for the public offering. The projected offering price quoted in the prospectus is $26.
Read more in the Silicon Valley/San Jose Business Journal.
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