Tesla prices secondary stock offering at discounted $767 a share

Tesla selling $2B of new stock after frenzied price gains

Tesla slumps as it announces $2bn stock offering

Shares of Tesla Inc. dropped 2.6% in premarket trading, after the electric vehicle maker disclosed that its previously announced common stock offering priced at a discount of almost 5%. The main subscribers Goldman Sachs and Morgan Stanley have the option of buying 397,500 additional shares in the offer. The stock rally even allowed the company to break the $150 billion threshold earlier in February, before the prices settled to around $800 per share on Friday.

Shares fell three in pre-market trading to about US$780, above Thursday's offering price.

Netflix's Masters of the Universe Lands Hamill, Headey, Gellar & More!
Chris, Sarah, Mark, Lena and the other unbelievable actors and actresses have given performances so powerful and real in a show that features a talking giant green tiger.


Tesla founder and chief executive Elon Musk plans to buy $10 million worth of the newly minted shares, and board member Larry Ellison, founder of Oracle, is interested in buying $1 million worth of the shares, according to the filing.

The automaker said it will use the funds it raises to "further strengthen its balance sheet, as well as for general corporate purposes". The share price opened lower Friday, jumped as high at $812.97 and has hovered around $802.

Trump will be the second acting president to attend the Daytona 500
The defending Daytona 500 champion is Denny Hamlin of Tampa, Florida. "Hopefully, we are able to miss [wrecks] again this year". Trump's reelection campaign will run a TV ad during the Fox broadcast of the race and fly an aerial banner near the speedway.


The stock offering "will be a bit of a shock to some given the company talked about no need to raise capital on its recent conference call", analyst Daniel Ives, managing director of equity research at Wedbush Securities, said in a commentary. "So in light of that, it doesn't make sense to raise money because we expect to generate cash despite this growth level".

At the time of Thursday's announcement, Tesla shares had risen more than 35% since the January 29 earnings announcement, perhaps being too tempting for an opportunity to ignore. At the time, Musk said the company was spending money sensibly and that there is no "artificial hold back on expenditures".

Google slams EU Commission for stifling innovation
We are witnessing yet another legal dispute between one of the big five USA tech giants and the European Commission. Judges will rule in the coming months.


Latest News