Tesla Stock Offering Raises $1.7 Billion For Model 3 Production (Image Credit: Datcode on Imgur)
About a week ago, Tesla made it public that new Tesla stock would be available as a way generate more funds for Model 3 production. The company's goal was to raise $1.4 to $1.7 billion. The final numbers would be affected by whether or not the underwriters chose to activate their purchase option.
Tesla Aims To Fill Nearly 400,000 Reservations For The Model 3
The offering is now closed and it was reported that Tesla met its mark. According to a SEC filing, the company netted about $1.7 billion. It reads:
The net profit was “approximately $1.7 billion, after deducting underwriting discounts and commissions and estimated offering expenses.”
Morgan Stanley and Goldman Sachs, the two underwriters, announced plans to move forward in purchasing the additional shares.
Tesla intends to use a majority of the raised funds for production ramp up of the upcoming Tesla Model 3.
“Capital supports accelerated ramp of Model 3 Because of the overwhelming demand that it has received for Model 3, Tesla intends to use the net proceeds from this offering to accelerate the ramp of Model 3. As noted in the Company’s first quarter shareholder letter, Tesla intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate its 500,000 unit build plan from 2020 to 2018. Proceeds may be used for working capital and other general corporate purposes as well.”
Tesla stock closed out the week at $223.04 per share. The stock price is up about 6% since the new stock offering.
See SEC filing at source link below.