• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 12 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 2 hours Indonesia Stands Up to China. Will Japan Help?
  • 2 hours Beijing Must Face Reality That Taiwan is Independent
  • 52 mins Gravity is a scam!
  • 18 hours What's the Endgame Here?
  • 10 hours US Shale: Technology
  • 1 day 10 Rockets hit US Air Base in Iraq
  • 1 day Canada / Iran
  • 2 days Wind Turbine Blades Not Recyclable
  • 1 day Remember: Only the Poor Can Reach the Kingdom of God
  • 1 day IRAQ / USA
  • 2 days Tales From The Smoke Shack and beyond.
Two Reasons Why Oil Prices Rose Today

Two Reasons Why Oil Prices Rose Today

Oil prices were trading slightly…

Tesla Announce Stock Offering to Raise Money to Pay Off DOE Loan Early

Tesla looks set to become one of the few high profile companies backed by the government as part of the Department of Energy’s loan program for clean tech companies, that actually succeeds. Solyndra was the most famous failure, but recently Fisker, another electric car maker, has ventured close to bankruptcy, failing to pay the first instalment on its $192 million government loan.

Just one week ago Tesla astounded the market by announcing its first ever profits and absolutely blitzing all analyst predictions for first quarter earnings and revenue. The success was led by incredible sales figures for the all-electric Model S luxury sedan, which saw 4,900 deliveries made against an expected 400.

Related article: What does the Future Holds for EV’s after Tesla Model S Failed Road Trip

Tesla intends to continue with this success by selling 2.7 million new shares and raising $450 million in a bond sale. CNN Money reports that in total the company hopes to raise around $850 million, part of which will go to paying off the $465 million loan from the DoE earlier than forecast, and the rest will be invested in other areas of the business.

Elon Musk, Tesla’s CEO, has already said that he will buy $100 million worth of new stock. Normally such share offerings cause market prices to fall, but due to Tesla’s strengths, and the confidence that Musk is showing by investing in the company himself, Tesla’s share price actually grew 6% in after-hours trading on Wednesday.

Tesla’s stock value is up 150% so far this year, driven by great performance, and confidence of further success in the future.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News