Tesla to raise around $500 million in public offering - nwitimes.com
DETROIT | Electric car maker Tesla Motors said Thursday it hopes to raise around $500 million in a stock offering that comes as it prepares to roll out its highly anticipated new SUV. Tesla will offer 2. 1 million shares and expects net proceeds of $492. 6 million. Tesla could make up to $566. 5 million if the underwriters exercise their option to buy additional shares. Tesla CEO Elon Musk intends to purchase $20 million worth of stock. Asked last week during the company's second-quarter earnings call if Tesla planned to raise capital, Musk said there might be value in doing so "as a risk reduction measure. it ended the quarter with $1. 2 billion in cash and cash equivalents. It's also investing heavily in a $5 billion battery factory in Nevada, which will make batteries for both its cars and its Tesla Energy home battery business. Tesla said it needs the cash to further development of the Model 3, a lower-cost electric car due out in 2017. The auto industry typically spends about $1 billion developing new cars and putting them on the market. Tesla is also rapidly expanding its network of Superchargers, which can add 170 miles to a Model S battery in 30 minutes. Tesla obtained a credit line of up to $750 million in June, but it spent $359 million during the second quarter. Source: www.nwitimes.com
