Tesla sold shares at the steepest discount it’s ever given investors

Tesla sold shares at the steepest discount it’s ever given investors

Tesla priced its second offering of stock at $767 apiece Friday. The main subscribers Goldman Sachs and Morgan Stanley have the option of buying 397,500 additional shares in the offer.

Shares fell 3% in pre-market trading to about $780, above Thursday's offering price.

Tesla announcement Thursday that it would put an additional $2 billion worth of stock on the market.

Tesla said in the presentation that he will sell 2.65 million shares at that discounted price to raise more than $ 2 billion. Chief Executive Elon Musk indicated "preliminary interest" in buying up to 13,037 shares in the offering, which would be valued at $10 million at the offering price, while board member Larry Ellison indicated interest in buying up to 1,303 shares for about $1 million.

Tesla warned in the filing that its shares have gone as high as $968.99 per share to as a low of $176.99 during the past 52 weeks.

The automaker said it will use the funds it raises to "further strengthen its balance sheet, as well as for general corporate purposes".

The stock offering conflicts with statements Musk and CFO Zach Kirkhorn made last month during Tesla's fourth-quarter earnings call.

"Musk also said Tesla had no acquisition targets so it is possible that has abruptly changed, but we think he wants to capitalize on the stock's recent upward explosion and we can't blame him".

"Despite Musk's bravado about Tesla's finances, the company needs billions of dollars to finance growth", said Erik Gordon, a professor at the University of Michigan's Ross School of Business.

Tesla Inc. investors who got in on Thursday's share sale received the steepest discount the electric vehicle maker has offered in its 10-year history as a public company.

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