Elon Musk, chief executive officer of Tesla Inc., speaks during a ceremony at the company’s Gigafactory in Shanghai, China, on Tuesday, Jan. 7, 2020.
Qilai Shen | Bloomberg | Getty Images
Tesla priced its secondary common stock offering at $767 a share, raising more than $2 billion, the company said on Friday. The move will likely largely be seen as a success since that is only a slight discount to its previous closing price.
The company said on Friday it will sell 2.65 million shares at that price, which is a 4.6% discount to its Thursday close. CEO Elon Musk will buy $10 million and Oracle billionaire Larry Ellison will purchase $1 million worth in the offering, the company said.
Shares of Tesla initially fell after the pricing but quickly turned positive, building on Thursday’s nearly 5% gain on news of the offering. The surprise move higher showed there is continued demand for the Musk-driven stock. The shares are up 92% this year alone through Thursday, raising questions about whether it is a bubble being driven by market factors.
Goldman Sachs and Morgan Stanley were the lead underwriters, who have the option to buy an additional 397,500 shares in the offering.
Tesla said it plans to use the proceeds “to further strengthen its balance sheet, as well as for general corporate purposes.” Analysts were not expecting