Insiders have sold 14,700 shares of company stock worth $3,610,196 in the last quarter. Shares were up 3.3% to $264.07.
Tesla (NASDAQ:TSLA) plans to raise 1.15-B in new funding to help fuel production of a mass market-targeted Model 3 electric auto set for release this year. (NASDAQ:TSLA) has 162.47 million outstanding shares among them 127.36 million shares have been floated in market exchange.
On Wednesday the company announced that it will offer $250 million in common stock and $750 million in convertible senior notes due in 2022 in concurrent underwritten public offerings. CEO Musk will participate by purchasing $25 million of common stock. If cash were tight, they could repay the obligations in equity.
On top of that, the basic Lucid Air also comes standard with a 10-speaker stereo, 19-inch wheels, LED headlights, a trio of touchscreen, a pair of trunks packing a total of more than 32 cubic feet of space, and 10 airbags.
The British portal claims the latest auto by Tesla Inc. will slot between the entry-level Model 3 and the larger, more expensive Model X.
During the earnings result conference in February, Musk stated that the company could finish its production preparations for Model 3 without bringing in new funds, that would send the electric carmaker "close to the edge" in terms of its overall cash position.
Outspoken Tesla bear Mark Spiegel tweeted after the announcement, "Does anyone really think that another $750M of debt on TSLA 's balance sheet is preferable to a straight stock sale up here?"
Wall Street has issued a $1bn cash support to Tesla, analysts thought more would be needed. Barclays had said that a $2.5 billion stock offering wouldn't be a surprise.
Tesla Inc.'s smaller-than-expected capital raise is likely a sign of Chief Executive Elon Musk's heightened confidence in the success of its Model 3 rollout, but analysts are concerned Tesla could ask for more money if it fails to deliver.
These rumors were confirmed by Tesla, herself in an after-market filing of the March 1 SEC - the USA regulator of stock market operations - but in fact they are prototypes of the Model 3 beta. "In many ways, I'm very supportive of what Tesla has done", Ian Robertson, BMW's head of sales and marketing, told us at the Geneva auto show.
The obvious question is, "Don't investors understand how much it costs to launch an entirely new vehicle?"
Tesla said the aggregate gross proceeds of the offerings, including the options granted to the underwriters, is expected to be approximately $1.15 billion.