Tesla Taps Public Markets Again; Raises Over $200M To Develop Model X Vehicle
Electric car company Tesla Motors has priced its follow-on offering of 5,300,000 shares of stock at $28.76 per share, the closing price for Tesla shares on June 2. Tesla CEO Elon Musk also plans to purchase 1,416,000 shares of stock directly from Tesla at the public offering price and Blackstar Investco, an affiliate of Daimler AG (a Tesla investor ), plans to purchase up to 637,475 shares of stock directly from Tesla at the public offering price. Tesla has also granted the underwriter a 30-day option to purchase up to an additional 795,000 shares of stock. Excluding the underwriter option, Tesla will raise around $211 million in this follow-on offering. This money is primarily going towards the development of its Model X crossover vehicle, says Tesla The Model X will be Tesla's first SUV , and will cost around $30,000. Musk has said that this car, which is expected to become available in 2013 , will be appeal to mainstream car buyers because of its lower price point.