From the numbers in the CNN article at http://money.cnn.com/2013/05/15/investing/tesla-stock-offering/index.html?source=yahoo_quote...
"All told, Tesla said it expects the actions to raise roughly $830 million."
and "plans to sell 2.7 million new shares and raise $450 million in a bond sale"..
830M minus 450M + 380M
380M / 2.7M = 114
I might be missing something.. but that's what I see... comments?
Sentiment: Strong Buy
$114/share??? When's the last time you saw a secondary declared 25% above closing price and 15%+ above all time high?
I'm not going to take a stab at guessing the pricing, but $114 is ridiculous. I will say that if Musk is able to convince underwriters to do it at $85 it would be a major coup because I've rarely seen a secondary declared with less than a 10% discount to closing price.
I think the market would be take anything north of $75 as a positive though so I'm not expecting a major pullback.
I calculate $68.36/share = it was complicated but here is how:
$830 million - ($100 for Elon) - ($450 bond) - ($67.5 bond over allotment) = $212.5 million from stock
New shares = 2,703,027 + 405,454 = 3,108,481
$212,500,000 / 3,108,481 shares = $68.36
Jeez Louis Doc - Yeeowwwsa to shorts. Can it really be that high? Yikes. I thought 80's were high. All I know is this offering will be gone in minutes. This stock is going to be a monster when Gen III hits the road.