Tesla Offers $450M in Stocks, Musk Buys $100M Worth
Tesla announced a new offering of 2.7 million shares of common stock today, along with $450 million worth in convertible senior notes.
Tesla plans to use the aggregate gross proceeds of the offerings, which they predict will be around $830 million, to pay back the US Department of Energy. Timing is also crucial with this announcement, as Tesla stock has nearly doubled in value since early April.
Tesla CEO Elon Musk also announced that he will personally be purchasing $45 million in common stock offering, and approximately $55 million directly from Tesla. Currently, Musk owns about 27 million Tesla shares, or 23.6% of the outstanding stock.
In connection with the note offerings, Tesla also announced that it will be entering into convertible note hedge transactions and warrant transactions which are meant to prevent dilution up to %100 over the offering stock price.
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Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="http://www.twitter.com/selmer07">Twitter</A> and <A title="Stephen on Google+" href="http://plus.google.com/117833131531784822251?rel=author">Google+</A>
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