Tesla's Fremont Factory

Tesla's Fremont Factory

Tesla Motors announced estimates of $738.3 million net proceeds from its latest share offering.

In total, Tesla sold some 3.1 million shares at roughly $242 per share

Full success from the offering, and now it's time to spend all the money on increasing the company's manufacturing capabilities and other stuff like development of the Model 3, construction of the Gigafactory and expansion of the Supercharger network.

Shares closed the week sharply lower at $230.77.

So the timing of the sale was perfect for Tesla (not so much for purchasers), as the financial market has been pummelled this week since the offering, with the wider US market suffering its worst loses (over 5%) since 2011.

From FORM 8-K:

"On August 13, 2015, Tesla Motors, Inc. (the “ Company ”) entered into an underwriting agreement (the “ Underwriting Agreement ”) with Goldman, Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc., as representatives of the several underwriters named in Schedule I thereto (the “ Underwriters ”), pursuant to which the Company agreed to issue and sell 2,694,934 shares of the Company’s common stock, par value $0.001 per share (the “ Common Stock ”), in a public offering pursuant to a Registration Statement on Form S-3 (File No. 333-188625) (the “ Registration Statement ”) and a related prospectus, including the related prospectus supplement, filed with the Securities and Exchange Commission (the “ Offering ”). In addition, the Company granted the Underwriters an option to purchase, for a period of 30 days from August 13, 2015, up to an additional 404,239 additional shares of Common Stock. The Underwriters notified the Company of the exercise in full of their option to purchase additional shares on August 14, 2015, and the Offering, including the sale of shares of Common Stock subject to the Underwriters’ option, closed on August 19, 2015.

The Company estimates that the net proceeds from the Offering will be approximately $738.3 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Underwriting Agreement is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference. "

Most of the capital comes from large financial groups:

"Goldman Sachs Group Inc. is buying about 1.18 million shares and Morgan Stanley is acquiring almost 962,000, Tesla said in a filing Wednesday. The other underwriters are JPMorgan Chase & Co., Deutsche Bank AG, Bank of America Corp. and Wells Fargo & Co."

Source: Automotive News

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