Tesla Sells. More Shares
Say what you want about Tesla, but people are buying. Not so much the cars, more so shares in the company. According to a regulatory filing, Tesla plans to sell 5.3 million new shares to the public, and up to 795,000 more to the underwriter, at $26 each. That would raise up to $158.5 million. According to Businessweek, “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 $214.3 million.” The proceeds are mostly for developing a crossover Tesla.
How the formerly broke Elon Musk found $39 million to dump into Tesla will be left for another day and another divorce court of the rich and famous story. More interesting is that Daimler expressed renewed interest in Tesla, to the tune of $16 million, even if its just to maintain their percentage.
Both Toyota and Daimler were early industry investors into the battery-powered car company. Not just for the dividends. Tesla supplies batteries for the plug-in Smart. For Toyota, Tesla makes an electrified RAV4.
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Cue the Tesla haters.... Say what you will, but at least people are lining up to invest in Tesla (and actually buying their products); Saab, not so much.
Any news about the Model S?