Tesla Motors Inc. said Thursday that it plans to sell $500
million in stock to fund its hefty spending on projects like the
Model 3 vehicle and its Nevada battery factory.
The offering will be the electric-car maker's first sale of
shares since May 2013.
Shares of Tesla, up 7.1% this year, gained 2.1% to $243.13 a
share in premarket trading.
Tesla has been plowing money into growth initiatives, including
its Model X SUV due later this quarter and the Nevada battery
factory slated to open in 2016. It has long-term ambitions to enter
the lower-end of the electric-vehicle market, and will unveil a
preview of its cheaper Model 3 in 2016 with plans to launch it a
year later.
Earlier this month, Tesla reported a second-quarter loss that
nearly tripled from a year earlier amid the hefty spending.
Tesla said Thursday that it will use the proceeds from the
offering for a variety of purposes, including growth of its stores,
service centers and energy business.
Tesla said Chief Executive Elon Musk intends to buy $20 million
in shares through the offering, adding to his existing $6.74
billion stake, according to FactSet.
Tesla said it will give underwriters the option to buy $75
million in shares. Goldman Sachs & Co. and Morgan Stanley are
book-running managers for the offering.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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