A drilling team in Iceland…
The Norwegian Petroleum Directorate expects…
Tesla Inc has raised a total of $1.2 billion in fresh capital by selling common shares and convertible notes, with the sum exceeding its target from earlier this week to raise $1 billion.
Tesla is offering to sell 1,335,878 common shares at $262 per share, for a total of $350 million, the electric vehicle maker said in a SEC filing on Friday.
Tesla chief executive Elon Musk has indicated his preliminary interest in buying up to 95,420 shares of Tesla common stock for a purchase price of around $25 million in this offering at the public offering price, the company said.
Alongside the offering of the common shares, Tesla is also offering convertible senior notes due in 2022, to raise $850 million, a separate filing said. The notes will bear interest at a rate of 2.375 percent per year, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. The notes will mature on March 15, 2022, Tesla said.
Earlier this week, Tesla announced offerings of $250 million of common stock and $750 million aggregate principal amount of convertible senior notes due in 2022 in concurrent underwritten registered public offerings. The company said that it would use the net proceeds from the offerings “to strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3, as well as for general corporate purposes.”
Related: Why Carl Icahn and Valero Are Pushing For Biofuels Changes in Washington
Tesla’s raising capital is not such a surprise for analysts who had been expecting some kind of similar move for a few months, as the company has been bleeding cash ahead of the much-anticipated Model 3 launch.
After the release of the Q4 2016 results last month, Musk told investors that “we’re considering a number of options but I think it probably makes sense to raise capital to reduce risk.”
As for Model 3, it looks like its beta prototype is not ready yet.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…