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Tesla to raise capital for e-car, energy projects


Blue Oval Staff

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Tesla to raise capital for e-car, energy projects

 

Tesla Motors announced Thursday it was planning to sell 2.1 million new shares in hopes of raising about $500 million (450 million euros). Tesla said it imagined the shares would be sold at Wednesday's closing price of $238.17.

 

Chief Executive Elon Musk would be ready to buy nearly 84,000 shares for about $20 million in the offering, according to a company statement.

 

Musk is already the company's largest shareholder with a 22.25 percent stake. He intends to use the fresh cash to boost the development of Tesla's energy business, its upcoming Model 3 project and its Gigafactory battery manufacturer.

 

Book-running managers for the offering included Goldman Sachs, Morgan Stanley, JPMorgan and Deutsche Bank Securities.

Tesla burns cash

 

The offering comes a week after Tesla reported a huge loss in the second quarter. The Silicon Valley-based e-car maker delivered 11,532 cars in the second period and said it had an operating loss of about $47 million, meaning a loss of $4,000 on every car it sold.

 

http://www.dw.com/en/tesla-to-raise-capital-for-e-car-energy-projects/a-18648121

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Wouldn't be awesome if your company actually produced enough revenue on its own to fund new projects?

I just wish certain parts of the press (who should know better) would stop extrapolating comparisons with Ford's Model T

It's complete BS that is also fooling potential investors into believing Tesla is more than it really is, a house of cards.

 

Funny how each time quarterly revenue takes a dive, there's another stock release just around the corner.

I have to ask, when is this madness coming to an end, Musk cannot keep fooling these investors.

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