Wednesday, May 18, 2016

Tesla to raise net $1.4-$1.7B in stock offering to ramp up Model 3 production

Telsa plans to raise approximately a net $1.4 billion in a common stock offering, after deducting underwriting discounts and commissions and estimated offering expenses. The company said it intends to use the proceeds to accelerate the production ramp of Model 3.
The net may increase to $1.7 billion if the underwriters’ option to purchase additional shares in this offering is exercised in full. The estimated net proceeds are based on the assumed public offering price of $204.66 per share—the last reported sale price of Tesla common stock on 17 May 2016.
Tesla said it intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate our 500,000 vehicle build plan from 2020 to 2018. It may also use a portion of the net proceeds from this offering for working capital and other general corporate purposes.
As of 15 May, Tesla held deposits from about 373,000 customers who had made reservations for the Model 3. This reservation total is a net number after about 8,000 customer cancellations and after about 4,200 reservations that Tesla canceled on the belief that they could have been duplicates from speculators.

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