Tesla gets $738 million from stock sale image

Good news seems to follow Tesla Motors Inc. as the auto company increased its proceeds to around $738.3 million due to its underwriters of its secondary stock sale which chose to purchase additional shares.

The electric carmaker sold a massive 3.1 million shares at the price of $242 each in order to get a bigger cash flow for its soon deliveries of its Model X sport utility car. The U.S. held automaker will face some major spending as it is planning to expand at a global level and build a big battery factory near Reno, Nevada.
Tesla announced last week that it was planning to sell 2.1 million shares, with an underwriter option to buy as many as 315,000 more, adding the following day after the announcement that the company has increased its previous numbers to 2.69 million shares and to the option available for as many shares as 414,239.

The electric carmaker stated that Goldman Sachs Group Inc. is going to purchase 1.18 million shares and that Morgan Stanley will buy 962,000. Other underwriters for the Tesla stock sales include JPMorgan Chase & Co., Deutsche Bank AG, Bank of America Corp. and Wells Fargo & Co.
Elon Musk, Tesla Motor’s CEO, is the largest shareholder with a 22% stake and has shown interest into buying 82,645 shares that amount to a total of $20 million in Tesla’s announcement made on the 14th of August. Tesla’s shares have gained 15% this year with Standard & Poor’s 500 Index going up 1%.

By Gabriela Florea