After market close today, Tesla announced a new public offering of about $2 billion of common stock to finance its ambitious Model 3 production program and for its CEO, Elon Musk, to exercise some of his stock options. We knew it was coming, but the size and most the details of the offering weren’t clear until now – though we still don’t know the price per share of the new offer.
The transaction is particularly interesting because of Elon Musk’s, Tesla’s CEO, involvement in the capital raise. Musk has always been cautious in maintaining his ownership level in Tesla and never selling any share, but now he is exercising an astonishing 5.5 million shares worth over $1.1 billion at today’s closing price. expand full story