Tesla Stock Offering Raises $1.7 Billion To Fund Model 3

MAY 29 2016 BY STEVEN LOVEDAY 13

Tesla Raises $1.7 Billion For Model 3 Production (Image Credit Datcode on Imgur)

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

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.

Source: SEC

Categories: Tesla

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13 Comments on "Tesla Stock Offering Raises $1.7 Billion To Fund Model 3"

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Heisenberghtbacktotheroots

Waiting for the naysayers…

It’s good to see money going to EV… Can’t stand to wait for the next offering 😉

EVdrive

Naysayers can kiss my butt. I was neck and neck with a Maserati on Friday off the line after we both stopped at a stoplight. As he bellowed smoke and his car roared like a dieing animal, my Rav4EV wizzed along powered by Tesla’s kick ass EV technology. He definitely wasn’t expecting me too keep up with him as we raced onto the freeway. #gascarsstink

Anon

Awesome. 😀

evcarstugatso

Very nicely done ! the model 3 will be a Hit! There Nothing Stopping Them Now!!

JyTesla3

“Tesla intends to use a majority of the raised funds for production ramp up of the upcoming Tesla Model 3.”

What about the giga factory? Tesla will need to raise more funds next year to build the giga factory because the current size cannot build 500,000 cars per year.

Big Solar

I bet they have a plan.

JyTesla3

Yes, raise more capital.
Here what Tesla need to do:
1. Build assembly line for model 3.
2. Build out giga factory.
3. Double supercharger.
4. Increase the number of service center.
5. Increase the number of stores.
6. Train more workers.
7. Hire more experience management.
8. More R&D on battery, autopilot, drivetrain.
9. Build factory in China.
10. Build factory in Europe.

They way more than 3 billion.

Thomas Greene III

That can all be done for 1 billion. Have you forgotten that Musk is a genius and he’s building the Hyperloop, rockets, and will be retiring on Mars? lol

Nathanael

Tesla’s secret is that a lot of that stuff has already been built — they’ve already spent the money.

Tech01x

The 500,000 cars a year as given in the last earnings call was across their entire product line. The Model S and X will still be getting cells from Panasonic in Japan.

They need 3 out of 5 phases of the Gigafactory to be online to be able to meet their stated end of 2018 goals. That means an increment of another $900 or $1 billion dollars. They will launch the Model 3 with only a single phase online and Tesla has almost completed their portion – the rest is Panasonic’s. The expenditure for the next phase is out of their current cash, which they now have something around $3 billion without using the ABL. Therefore, they should have enough cash to pay for 2 phases right now. The 3rd phase depends on exact price drops and the cash flow over the next two years. It is likely that Tesla’s portion of the phase is due after the Model 3 initially ships.

Get Real

I have been wondering why we haven’t heard from professional stock manipulator/FUDster Mark Spiegel for awhile.

I guess that he and his posse of fellow non-EV owning shorters like tftf, agzand, zzzz etc have been relatively quiet here with their FUD lately.

Its pretty hard fighting against the inevitable future.

Pushmi-Pullyu

He posts as Four Electrics/Three Electrics… or at least, one post under the handle of Four Electrics claimed he was Mark Mark Spiegel, who indeed is a professional stock manipulator and long-time Tesla short-seller.

Curious indeed that there no Tesla bashing posts in this comment thread. Perhaps the InsideEVs moderators are watching comments posted here on a real-time basis, and are deleting them before they’re posted?

Miggy

Speeding

While it is claimed that the first actual speeding ticket was issued in Ohio in 1904, the first recorded incident of someone being punished for breaking the speed limit happened in New York in 1899. Jacob German was a taxi driver who used a car made by the Electric Vehicle Company to carry passengers around the streets of New York. While horse-drawn cabs were still far more popular, German was one of around 60 cabbies who used the EVs.

A police officer on a bicycle noticed German speeding down Lexington Avenue at the terrifying speed of 19kmh, or 50 percent faster than the limit of 13kmh. German was not issued with a speeding ticket, but rather thrown in jail!