ELECTRIC car manufacturer Tesla has announced that it intends to offer $500m (£320m) of additional shares of common stock in an underwritten registered public offering.
The raised capital will be used to accelerate growth of the business globally, but specifically will help fund Tesla’s upcoming Model 3 project and completion of a battery gigafactory in Nevada.
Tesla boss Elon Musk has said publicly that he intends to purchase $20m of stock at the public offering price, in an attempt to provide investors with confidence in the company’s longterm outlook.
Reports made public on 5 August stated larger quarterly losses, which in turn had led to a 12 per cent fall in Tesla’s share price by Wednesday’s close.
Musk is already the company’s largest shareholder, and will be adding approximately 84,000 further shares to his portfolio based on his and the company’s statements.
Goldman Sachs and Morgan Stanley are acting as the joint bookrunning managers for the offerings. JP Morgan and Deutsche Bank are bookrunning managers and BofA Merrill Lynch and Wells Fargo are acting as co-managers.