Tesla announced today that it has completed a $2 billion new offering announced last week, and that underwriters have also driven a $300 million subscription to additional shares. Last week, Tesla announced the issuance of 2.65 million to 3.1 million new shares, raising more than $2 billion. Today, the electric car maker confirmed that it had completed the new offering, with the underwriters buying an additional 397,500 shares.
Tesla said net income from the share issue was $2.31 billion. It had previously said the funds would be used to “strengthen its balance sheet” and “general corporate use”.
The company’s share price has soared since it set an offering price of $767 a share, and it closed at a new high of $917 a share on Wednesday, US time.
In addition, Elon Musk bought 13,037 shares of Tesla shares for $10 million on Valentine’s Day on February 14, according to documents filed with the Securities and Exchange Commission.
Musk’s shares were worth an average of $767 a share, bringing his personal stake to 34.1m shares, or 18.5 per cent.
Tesla’s share price has more than doubled so far this year. The rally was initially driven by better-than-expected profit performance in the third quarter, and Tesla’s market capitalisation surpassed that of the three traditional automakers General Motors, Volkswagen and Fiat Chrysler Automobiles combined. Traders are aware of the risks of shorting the electric car company, with about 15 percent of Tesla’s available shares short, the lowest in at least a year, according to S3 data.
Earlier this year, Musk traveled to Shanghai to attend the opening of the company’s local super factory. It was Tesla’s first factory outside the United States. The plant was shut down for a time because of the new coronavirus outbreak, but resumed production last week.