Home Technology Tesla Motors Inc (TSLA) Sets Stock Offering Price At $242 Per Share

Tesla Motors Inc (TSLA) Sets Stock Offering Price At $242 Per Share

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Wall Street darling Tesla just raised $600 million and the share price moved up. Most companies see their share price sag to the offering price or below when they undertake a secondary offering that puts more shares on the market, but not Tesla. The stock is up over $3 in pre-market trading Friday to $246.

TSLA new shares price

Following up on its announcement of a $600 million stock offering on Thursday, electric vehicle maker Tesla Motors said on Friday that the new shares would be priced at $242 each. That price is just a few cents less than yesterday’s closing number for the company.

According to its statement, “Tesla intends to use the net proceeds from this offering to accelerate the growth of its business in the United States and internationally, including the growth of its stores, service centers, Supercharger network and the Tesla Energy business, and for the development and production of Model 3, the development of the Tesla Gigafactory, and other general corporate purposes.”

Details on Tesla (TSLA) stock offering

Tesla’s statement also notes that founder and CEO Elon Musk will purchase at least $20 million of the additional Tesla shares being made available in the offering. Also of note, the underwriters will have a 30-day option to purchase up to $75 million of additional common shares.

Of interest, Goldman, Sachs & Co. and Morgan Stanley have been hired as lead joint book-running managers for the Tesla offering, while J.P. Morgan and Deutsche Bank Securities are acting as additional book-running managers for the offering. BofA Merrill Lynch and Wells Fargo Securities are co-managers of the transaction.

In last week’s second quarter earnings report, the firm admitted that its quarterly loss was up almost 300% to $184.2 million compared to $61.9 million in the same quarter of 2014. The EV maker claimed the additional funds were required for their ongoing expansion costs. However, on a positive note, Tesla’s revenue was up a robust 21% to $878 million year over year for the quarter.

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