Tesla's Second Stock Sale Nets $738M for Automaker

Aaron Cole
by Aaron Cole

Tesla’s second stock offering netted the automaker $738 million in cash for its Gigafactory, Model 3 development, and dealer and service upgrades, Bloomberg is reporting.

Banks exercised their options to buy more stock than the initial $500 million estimate, with underwriters Morgan Stanley and Goldman Sachs buying more than 2 million of the available 3.1 million shares. Tesla CEO Elon Musk said he would be interested in buying $20 million worth of shares in the offering.

(Before the stock offering, the banking arms of Morgan Stanley and Goldman Sachs loaned Musk a combined $475 million, to which Musk pays market rate and is separate from their investment divisions, according to the offering.)

Shares of Tesla were down more than 3 percent in Thursday trading to $245.

The second offering is aimed at helping the company invest in capital projects that have sapped the company of cash. Its massive battery factory in Nevada, dubbed Gigafactory, and development costs for its lower-priced sedan, the Model 3, have cost the company money, Musk said.

After the company reported substantial losses in the second quarter of 2015, analysts calculated that Tesla lost around $4,000 on each car it sold.

Despite that, a Morgan Stanley analyst said Tesla stock could be massively undervalued, in part, because the company could develop an autonomous ride-sharing business with its electric cars.

Tesla is preparing to ship to dealers its Model X, which is the company’s third vehicle.


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  • Stuki Stuki on Aug 20, 2015

    At $4K loss/car, $738M is another 200K Teslas. Which, at 10K subsidies/car, is a cool $2Billion taken out of taxpayers pockets... Free money for bankster trash, working as intended...

    • See 2 previous
    • Stuki Stuki on Aug 21, 2015

      @RideHeight Cue pervasive publicly funded indoctrination, also working as intended.

  • Brandloyalty Brandloyalty on Aug 20, 2015

    "At $4K loss/car, $738M is another 200K Teslas. Which, at 10K subsidies/car, is a cool $2Billion taken out of taxpayers pockets… Free money for bankster trash, working as intended…" In an attempt to keep "The Truth about Cars" seem less like a backwater of ignorance, I respond to the above comment with this link: http://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting-10m-a-minute-in-subsidies-says-imf?CMP=share_btn_fb

    • See 2 previous
    • Stuki Stuki on Aug 21, 2015

      And participants in the illegal drugs trade get a massive implied subsidy, simply on account of its illegality. We should therefore, well indoctrinateds that we are, also subsidize serial killers.... To the tune of, say $10K, per student per school shooting.

  • Secret Hi5 Cream of mushroom interior looks good. Impractical for families and denim jeans wearers.
  • Matt Posky Hot.
  • Lou_BC Murilee is basically correct on the trim levels. People tend to refer to Ford's full-sized cars as "Galaxie 500" or "Galaxie's" even though that's just the mid level trim. I was never a fan of the '69 snout or any of the subsequent models. The vacuum controlled headlight covers typically failed. It was a heavy clunky system also found on the Mercury's like the Cougar. The XL's and LTD's could be purchased with factory bucket seats and a center console with a large shifter, similar to the type of throttle on an airplane. The late 60's era Ford cars had coil springs in the rear which rode nice. The shape of the fender wells did not lend themselves to fitting larger tires. The frame layout carried on to become the underpinnings of the Panther platform. I noticed that this car came with disc brakes in the front. There was a time when disc's were an upgrade option from drum brakes. Ford's engines of similar displacement are often assumed as being from the same engine families. In '69 the 429 was the biggest engine which was in the same family as the 460 (385 series). It was a true big block. In 1968 and earlier, the 428, 427, 390's typically found in these cars were FE block engines. The 427 side oiler has always been the most desired option.
  • Drew8MR Minivans are expensive new if you are just buying them for utility. Used minivans are often superfund sites in back compared to the typical barely used backseats in a lot of other vehicles and you aren't going to get a deal just because everything is filthy, broken and covered in spilled food and drink.
  • Arthur Dailey This is still the only 'car' show that our entire family enjoys. This is not Willie Mays with the Mets style of decline. More like Gretzky with the Blues. It may not be their 'best' work but when it works the magic is still there.
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