Tesla: launches 2 billion dollar capital increase
(CercleFinance.com) - Tesla is launching a capital increase of 2 billion dollars via an underwritten public offering, the Californian electric carmaker said in a statement on Thursday.
The company said it has granted the underwriters a 30-day option to purchase up to approximately 300 million dollars of additional shares, meaning that the total gross proceeds of the offering could reach 2.3 billion dollars.
Tesla said it intends to use the net proceeds from the offering to further strengthen its balance sheet, as well as for general corporate purposes.
Elon Musk, Tesla's CEO, said he is taking part, buying up to 10 million dollars worth of stock while Larry Ellison, Oracle's founder and a member of Tesla's board, will purchase up to 1 million dollars of shares.
The Tesla share was down over 4% in pre-market trading on the news.
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