Advertisement

Tesla Raises $210 Million More In Dash To Produce Model X SUV


2011 Tesla Roadster Sport. Photo by Joe Nuxoll.

2011 Tesla Roadster Sport. Photo by Joe Nuxoll.

Enlarge Photo

Tesla Motors, the company building high-end electric vehicles such as the Roaster sports car, raised more than $200 million today in a follow-on public offering.

Much of the money is being used to help pay for development of its third electric car — the sport utility vehicle styled Model X — and comes less than two weeks after the offering was announced. The company’s CEO, Elon Musk, first alerted the market to the offering last month.

The company priced its offering of 5.3 million shares at $28.76 per share, or yesterday’s closing price. That’s a solid pricing for Tesla, considering it went public at $19 per share last year, and hasn’t proven to markets yet that it will be able to be profitable. A fair bit of skepticism has developed around the company’s prospects.

2011 Tesla Roadster Sport. Photo by Joe Nuxoll.

2011 Tesla Roadster Sport. Photo by Joe Nuxoll.

Enlarge Photo

In addition, Tesla has given the bankers handling the offering — Goldman Sachs is leading — a 30-day option to purchase up to an additional 795,000 shares of common stock.

The company said CEO Musk separately plans to buy 1.4 million shares of common stock at the offering price, while Daimler AG’s affiliate Blackstar Investco will buy up to 637,475 shares from Tesla at the same price.

Details about the SUV Model X have been scarce — one of the few facts known about it is that it will use the same power train as Tesla’s second car, Model S.

Tesla has said it will be on track to be profitable once it releases the Model S next year, but that it wanted additional equity to help ramp up production of the Model X.

This story, written by Matt Marshall, was originally posted on VentureBeat's GreenBeat, an editorial partner of GreenCarReports.

+++++++++++

Follow GreenCarReports on Facebook and Twitter.

Advertisement
 
Follow Us

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comment (1)
  1. I hope someone remembers that they have to earn this money back at some point.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion? Join the conversation!

Advertisement
Advertisement

Get FREE Dealer Quotes

From dealers near you
Go!

Find Green Cars

Go!

Advertisement

 
© 2014 Green Car Reports. All Rights Reserved. Green Car Reports is published by High Gear Media. Send us feedback. Stock photography by izmo, Inc.
Advertisement