The electric automaker said Friday it has priced its secondary stock offering at $767 a share - a 4.6 percent discount on its Thursday closing price, but almost 80 percent higher than it was at the start the year.
The underwriters of the offering will also have a 30-day option to buy up to approximately $300m of additional common stock.
Tesla shifted gears Thursday and said it would issue new shares to raise fresh cash, as the electric carmaker responded to the coronavirus epidemic impact on its Shanghai factory and the China vehicle market.
According to Tesla Inc.'s Thursday's (February 13th) statement, the CA-based carmaker said it would be offering 2.65 million shares, of which the Tesla boss American billionaire entrepreneur Elon Musk would be purchasing stocks worth of $10 million, while a Tesla management board member alongside Oracle co-founder, Larry Ellison was expected to purchase Tesla stocks worth of at least $1 million.
Tesla on Thursday - in an about-face - announced plans to raise $2 billion in a stock offering to take advantage of an astronomical jump in its share price.
Tesla warned in the filing that its shares have gone as high as $968.99 per share to as a low of $176.99 during the past 52 weeks.
The company said it plans to use the net proceeds "to further strengthen its balance sheet, as well as for general corporate purposes".
Just last month, Musk said quote: "it doesn't make sense to raise money".
"Despite Musk's bravado about Tesla's finances, the company needs billions of dollars to finance growth", said Erik Gordon, a professor at the University of Michigan's Ross School of Business.
The stock, which rose 4.8% on Thursday after the stock offering was announced, has more than doubled (up 130%) over the past three months, while the S&P 500 has gained 9.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.