7 June 2011
Less than a year after debuting on the Nasdaq, electric vehicle manufacturer Tesla Motors raised more than $211 million in a combined public offering and private placement.
The California-based car maker sold 5.3 million shares at $28.76 to raise $152 million, but if underwriter Goldman Sachs takes up the option to buy a further 795,000 shares, the raising could reach $175 million.
Meanwhile, Tesla CEO Elon Musk has bought an additional 1.4 million shares in a concurrent private placement, while Blackstar Investco, an affiliate of German car maker Daimler, will purchase up to 637,475 Tesla shares.
If Goldman Sachs buys its full stock allocation, proceeds of the combined public offering and private placement will total $234.35 million.
The offer price is based on Tesla’s Thursday closing price and is broadly in line with the $26.72 stock price before its funding plans were announced at the end of May.
After the follow-on was priced on Friday, Tesla shares climbed to an intraday high of $31.50, up 9.5% on Thursday’s closing price. It closed Monday trading at $28.70.
Proceeds of the fundraising will go towards development of Tesla’s Model X crossover vehicle.
Tesla joined the Nasdaq last July following an $226 million initial public offering.
Meanwhile, fellow Californian electric vehicle company Fisker Automotive, raised $115 million in a third round of private financing.
Charlotte Dudley
