REUTERS/Noah BergerElectric car company Tesla, and its CEO Elon Musk, are back in the news.
The primary story is that the company is raising more money, offering new common and convertible shares, and taking advantage of its soaring stock price.
Tesla Motors, Inc. (TSLA) announced today offerings of 2,703,027 shares of common stock and $450 million aggregate principal amount of convertible senior notes due 2018 in concurrent underwritten registered public offerings. In addition, Tesla has granted the underwriters a 30-day option to purchase up to an additional 405,454 shares of common stock and $67.5 million in aggregate principal amount of the notes.
But the big headline is that CEO Elon Musk has announced that he will make a big investment into Tesla.
In addition, Elon Musk, Tesla’s Chief Executive Officer and cofounder, intends to purchase shares of common stock at the same public offering price for an aggregate purchase price of $100 million. Of this amount, approximately $45 million would be purchased in the common stock offering, and approximately $55 million would be purchased directly from Tesla in a subsequent private placement due to the waiting period requirements of the Hart-Scott-Rodino Act.
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