Tesla on Friday had more to say about its plan to sell more than 2 million shares of its stock. And it is offering what looks like a deal on the shares.
In a filing with the U.S. Securities and Exchange Commission, Tesla said that it will sell 2.65 million shares of stock for $767 each. That amount is equal to a 4.6% discount from the $804 a share price where Tesla’s stock closed on Thursday.
Tesla expects to raise more than $2 billion in the sale, which the company announced on Thursday. As part of the sale, Tesla Chief Executive Elon Musk will buy $10 million worth of company’s stock, and Tesla board member Larry Ellison will purchase $1 million worth of Tesla’s shares. Tesla’s lead underwriters in the sale, Goldman Sachs and Morgan Stanley, have also been given an option to buy an extra 397,500 shares in the stock offering.
Tesla said it intends to use the proceeds from the stock sale to “further strengthen its balance sheet, as well as for general corporate purposes.”
The sale comes during what has been a huge surge in Tesla’s share price in recent weeks. Since the start of the year, Tesla’s shares have almost doubled in value, to around $802 on Friday.
Separately, Tesla also said on Thursday that it has received a subpoena from the SEC for “information concerning certain financial data and contracts including Tesla’s regular financing arrangements.”
