Tesla Motors Inc. on Friday boosted the size of its stock offering, unveiled just a day earlier, by more than $140 million. Tesla stock was flat, near 242, in afternoon trading on the stock market today. For additional video content, click the “video” tab at the top of this page.
The offering’s underwriters have a 30-day option to buy up to $75 million of additional shares, Tesla said. Tesla faces numerous headwinds, including continuous losses, the negative impact of a strengthening dollar, limited demand for electric cars, high expenses, and production constraints such as the shortage of battery supply. And the company continues to burn large sums of cash on capacity expansions and new products. Moreover, it would do so at a price of $242 per share, a slightly discount on the close-of-business share price recorded on Thursday.
Rendering of a completed version of Tesla’s now under-construction Gigafactory. Up to Wednesday’s close, they had fallen 12 percent since August 5 when Tesla reported results.
Underwriters will receive $9.7 million of the $652 million total proceeds. (NASDAQ:TSLA) to post an earnings per share number of $-0.66 for the quarter that ends on 2015-09-30.
Tesla announced earlier this week that it would sell 0 million worth of stock. From what it seems, Tesla Motors is addressing the rising cash burn problems from its equity sale, a move which investors are taking positively.
Tesla Motors, Inc. designs, develops, manufactures and sells electric vehicles, electric vehicle powertrain components and fixed energy storage systems. Its products comprise Model S and The Tesla Roadster. The offering will bring increased stability for the smallest and youngest publicly held US auto manufacturer, which is now fending off major capital expenditures needed for to support its global aspirations and triple the vehicle range.