EPA re-opens Mid-Term Evaluation Process for light-duty vehicle greenhouse gas standards 2022-2025
Lucid Motors pricing base Lucid Air luxury EV at $52,500 after Fed tax credits; fully loaded above $100K

Tesla to raise about $1.15 with offerings of common stock and convertible senior notes

Tesla announced offerings of $250 million of common stock and $750 million aggregate principal amount of convertible senior notes due in 2022 in concurrent underwritten registered public offerings. In addition, Tesla has granted the underwriters a 30-day option to purchase up to an additional 15% of each offering. The aggregate gross proceeds of the offerings, including the options granted to the underwriters, is expected to be approximately $1.15 billion.

Elon Musk, Tesla’s CEO, will participate by purchasing $25 million of common stock. Tesla intends to use the net proceeds from the offerings to strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3, as well as for general corporate purposes.

The notes in this offering will be convertible into cash and/or shares of Tesla’s common stock at Tesla’s election. The interest rate, conversion price and other terms of the notes are to be determined. With respect to the notes, Tesla intends to enter into convertible note hedge transactions and warrant transactions to limit dilution of its common stock. In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the hedge counterparties or their affiliates expect to enter into various derivative transactions with respect to Tesla's common stock concurrently with or shortly after the pricing of the notes, including with certain investors in the notes.

Goldman, Sachs & Co., Deutsche Bank Securities, Citigroup and Morgan Stanley are acting as lead joint book-running managers for the offering, with Barclays, BofA Merrill Lynch and Credit Suisse acting as additional book-running managers.


Account Deleted

Tesla only issue 250 million USD of common stock and Musk will personally buy 10% of that.

I am looking forward to see Tesla launch their on-demand driverless Taxi service Tesla Network sometime in 2018. Profits from service is all Tesla need to finance multi-billion USD construction of new Giga factories and thousands of new service centers and supercharger stations globally while at the same time have positive net earnings.

The comments to this entry are closed.