Posted on 05/25/2011 12:40:04 PM PDT by Red Badger
Electric car maker Tesla Motors Inc says it plans to raise up to $US214.3 million ($A203.2 million) by selling common stock, partly to fund development of a crossover vehicle as it seeks to expand its offerings beyond its Roadster sports car.
The news sent shares up nearly seven per cent in afternoon trading.
Tesla plans to sell 5.3 million shares to the public, and up to 795,000 more to the underwriter, at $US26 each, according to a regulatory filing. That would raise up to $US158.5 million ($A150.29 million). The $US26 price is a three per cent discount to Tuesday's closing price of $US26.72.
CEO and co-founder Elon Musk will also buy 1.5 million shares at the same price in a private sale. Blackstar Investco LLC, an affiliate of Daimler AG, will buy 644,475 shares directly from Tesla at the public offering price. That would bring total proceeds of $US214.3 million ($A203.2 million).
Executives typically buy shares in their own company to show investors their faith in the future of their company.
Tesla sells one model, the Roadster. Deliveries of a second car, the Model S, begin next year. Tesla also makes technology like battery packs and chargers for Daimler and Toyota.
When the company, based in Palo Alto, California, went public in June 2010, it was the first carmaker to go public since Ford Motor Co held its initial public offering in 1956.
It has posted losses since the initial offering as it invests heavily in research and development, but some analysts believe the company could eventually become the fourth largest carmaker as the electric vehicle market, now tiny, expands.
Crucial to its success is developing more electric car models that appeal to a broader demographic.
It has delivered about 1,650 of its Roadster sports cars as of the beginning of the month and received more than 4,600 reservations for its forthcoming Model S sedan.
Now in development is the Model X, which is an SUV. Tesla currently plans to show a prototype of the Model X crossover by the end of 2011 and start selling it in the fourth quarter of 2013.
Shares rose $US1.68, or 6.3 per cent, to $US28.40 during midday trading. After closing at $US23.89 in its June IPO, the stock hit a low of $US14.98 on July 7 and has risen since then.
didn’t the stimulus give this company tens of millions of dollars?
$350 Million.
http://green.yahoo.com/blog/ecogeek/1116/and-the-stimulus-money-goes-to.html
I don’t know if they actually got it or a portion of it.................
Which will sell more the X or the Dolt?
Get back to me when one of these contraptions wins the Pikes Peak challenge.
$350M
How many vehicles have they built??
$109,000 base price. Cheap!;)
I’ve seen more new Fiat 500’s than Teslas, and Fiats just went on sale a few weeks ago. With the Fiat, you can get over 400 miles on a tank...the Tesla..what, 80 miles on a charge? For the extra $82K - bite me.
Would-be investors beware: the use of electricity is apparently the ONLY attribute this company shares with the brilliant, late inventor.
And how much did Tesla folks give to the One’s campaigns to get that amount back?
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