Tesla raises $2 billion in secondary stock offering priced at $767 a share - 5% below where it's trading now
- Tesla priced its secondary stock offering at $767 a share, a nearly 5% discount on the stock's Thursday closing price.
- The company will raise around $2 billion from the sale.
- The narrow discount on the secondary offering is a sign of strength for the firm, which has been on a naysayer-defying bull run.
- Read more on Business Insider.
Tesla will sell 2.65 million shares of common stock for a price tag of $767 a share, the company announced Friday. That's a 4.6% discount on Thursday's closing price.Shares already retreated in the premarket on Friday, trading as low as $781.59, which is 2.7% below Thursday's closing price. Advertisement
The reduction is actually a signal of success for the electronic automaker - secondary stock offerings are normally priced below what shares trade at, and this is a slimmer margin than most. But Tesla shares have been on a bull run that has defied reasonable expectations recently, squeezing short-sellers as the stock surges. The company is raising about $2 billion from the sale.
Tesla will use the proceeds "to further strengthen its balance sheet, as well as for general corporate purposes," the firm said in a statement.Two buyers of the offering are already set and public. CEO Elon Musk, will buy up to $10 million in common stock, and Larry Ellison, a member of Tesla's board of directors, will buy up to $1 million worth of shares.
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