Tesla Announces $2 Billion Offering Of Common Stock

by GoNews Desk 1 week ago Views 747
Tesla Announces $2 Billion Offering Of Common Stoc
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Tesla Inc. on Thursday announced that it intends to offer about $2 billion of common stock in an underwritten registered public offering deal.

The company has also granted the underwriters a 30-day option to buy up to $300 million of additional common stock.

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CEO Elon Musk, who had earlier denied raising more cash, will buy up to $10 million worth of stock in the offering, while billionaire Oracle founder Larry Ellison, a member of Tesla’s Board of Directors will purchase up to $1 million of common stock, the company said.

Tesla intends to use the net proceeds from the offering to further strengthen its balance sheet, as well as for general corporate purposes.

Tesla stock (TSLA, +4.78%) was down as much as 4.2% in early trading. It fell as much as 7.2% in premarket trading before recovering to trade nearly 5% higher as the closing bell approached.

Goldman Sachs & Co. LLC and Morgan Stanley are acting as lead joint book-running managers for the offering, with Barclays, BofA Securities, Citigroup, Credit Suisse, Deutsche Bank Securities, and Wells Fargo Securities acting as additional book-running managers, and Societe Generale acting as co-manager, the company said.