Tesla New Stock Sale Brings In $738 Million

AUG 21 2015 BY MARK KANE 25

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

Categories: Tesla

Tags: , , , ,

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25 Comments on "Tesla New Stock Sale Brings In $738 Million"

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offib
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offib

damn, I missed it!

Grumpy
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Grumpy

Good thing you missed. It will be a better buy on Monday 🙂

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Cue all the Tesla bashers trying to convince us that Tesla is in serious financial trouble, to promote their short seller stock position…

Frankly, I don’t care about Tesla’s stock, except insofar as it helps the company borrow the money it needs to support its rapid ongoing expansion. What I care about is what Tesla is accomplishing, not how many years it will be (and it will be years) before Tesla starts giving dividends to stockholders.

TomArt
Guest
TomArt

don’t forget everyone’s favorite catch-all phrase: “Ponzi scheme”!!!

😉

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Tesla is now selling postage stamps? Kewl! 😉

Scramjett
Guest
Scramjett

Yes, I’m sure they’ll point out their significant drop in the last two days, erroneously attributing it to dilution of the stock and ignoring the fact that the market as a whole (especially NASDAQ, where TSLA is indexed) has tanked big time (or is undergoing a “correction” if you follow the media hubbub).

Speculawyer
Guest
Speculawyer

Yep. The stock actually rose when they announced the follow-on offering. That almost never happens, the stock usually take a hit.

TomArt
Guest
TomArt

Just for fun, I just went to Tesla’s site and maxed out a Model S.

The S70, base model, is $70k (not including $1,200 destination charge, state or federal incentives, nor estimated gas savings).

The [P90D] (I’m using the brackets to denote the Ludicrous Mode underline because I am HTML illiterate) comes out to $143k.

If you drop the rear-facing seats ($3k), the [P90D] is exactly twice the S70.

I thought that was interesting…now, back to our regularly-scheduled commentary…

TomArt
Guest
TomArt

P.S. – For reference, I’m in the USA.

Nix
Guest
Nix

That sounds about right. The base BMW 528i is $50K in the US, and the M5 quickly blows up to $140K with every single option checked. That’s actually closer to 3 528i’s for the price of a decked out M5.

By the way, this is where car manufacturers make their biggest profit margins. On the options.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

TomArt said:

“The [P90D] (I’m using the brackets to denote the Ludicrous Mode underline because I am HTML illiterate)…”

I’ve tried two different ways to use HTML/CSS tags to do underlining in posts here, but neither worked. I guess the software here doesn’t allow it. 🙁

Jay Cole
Admin

We have everything disabled around here – just to have the site run as smooth as possible across all platforms worldwide.

…its like the last millennium all over again, (=

/300 baud FTW

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Ohhh, Jay reveals his inner snark.

But not every text markup is disabled here.

test

Jay Cole
Admin

Heeh…my only real power around here – the power to underline!

Watch as I liberally flaunt my e-superpowers!

Pushmi-Pullyu
Guest
Pushmi-Pullyu

LOL!

I noticed in an article the other day that a contributor had used the “strikout” text markup. I’m guessing that’s another html/css function that can’t be accessed by us mere mortals. Let’s see…

test

Jay Cole
Admin

Mikael
Guest
Mikael

Even if it’s not the official way it’s easy enough to call it P90DL since anyone in here most likely will understand what the L is for. 🙂

Ambulator
Guest
Ambulator

The old way to indicate underlining is _P90D_. I still see it sometimes.

Speculawyer
Guest
Speculawyer

Would I have to pay a destination charge if I pick it up at the factory?

Alonso Perez
Guest
Alonso Perez

Man, is Elon Musk lucky, or what?

I mean sure, he works hard, he deserves what he has accomplished.

But sometimes luck takes him the extra mile. Tesla’s secondary offering would be impossible with today’s market conditions. They closed it literally a day before the market started tanking brutally.

Scramjett
Guest
Scramjett

Yeah, he dodged a .50 cal bullet there!

vdiv
Guest
vdiv

Talulah: “Hi Honey, welcome home! What did you do today?”
Elon: “Ah, nothing much. Just pulled 3/4 of a billion dollars out of thin air.”

To those whom much is given, much is expected. No pressure, Mr. Musk, no pressure 🙂

Speculawyer
Guest
Speculawyer

I kept telling the Tesla doubters that there are lots of Silicon Valley millionaires ready to give them more money to keep things going as long as they are making good progress. This follow-on offering sure validates what I said.

Tesla is building technology that people want to have succeed. So they’ll keep it going even if it means buying an already highly valued stock.

Fred
Guest
Fred

You gota love it keep going Mr Musk 🙂

Mister G
Guest
Mister G

All the wall street firms that were bailed out during the great recession are buying Tesla stock.