Tesla Prices 5.3 Mln Additional Shares at $28.76
Tesla Motors Inc. priced and fully allocated its follow-on offering of 5.3 million additional shares of common stock. The company noted that the shares are priced at $28.76 per share, which is the closing share value of Tesla shares on June 2, 2011.
Tesla has granted the underwriter, Goldman, Sachs & Co., a 30-day option to purchase up to an additional 795,000 shares of common stock. Together with the underwriter option, the company expects total proceeds from the offering to be about $234 million.
The Palo Alto, California based automaker said it intends to use a portion of the net proceeds from the offering and the concurrent private placement to fund the development of its Model X crossover vehicle.
In addition to the announced public offering, the company also announced a private placement in which Elon Musk, Tesla’s Chief Executive Officer and cofounder, intends to purchase 1.41 million shares of common stock from Tesla at a purchase price of $28.76.
After the news of the second public offering came in, the shares of the automaker rose dramatically. The company had announced its initial public offering a year ago at a purchase price of $17.