Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Tesla Motors raises US$1bn as it readies for Model 3 launch

Thursday, March 16, 2017 8:09
% of readers think this story is Fact. Add your two cents.

Tesla Inc (NASDAQ:TSLA) rallied as it raised less money than expected for the launch of its mass market electric car, the Tesla 3 range.

Elon Musk, Tesla’s chief executive, had already warned a fund raise was on the way, but at US$1bn the amount was below the figure many analysts had forecast.

The financing will comprise US$250mln in new shares and US$750mln of convertible senior debt.

Musk, who will invest US$25mln personally, said there would be hedges in place to cap any potential dilution from the convertible notes.

Tesla has raised around $9bn in the past five years, but its market value is now US$42bn due to the excitement over the potential of its new car.

An overallotment provision will allow the underwriters to sell an extra 15% of the share element if demand is strong.

Musk said last month that Tesla intended to spend US$2bn – $2.5bn ahead of the start of Model 3 production in July.

Cash at the end of its last quarter was more than US$3bn, but Musk said Tesla needed a capital buffer as spending would go up even more as it integrates its recently acquired Solar City business and beefs up its manufacturing operation.

Shares rose 2.2% to US$261.37.

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.