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Tesla Founder to Invest $100 Million in Surging Electric Car Company | Companies & Executives content from IndustryWeek

May 15, 2013
NEW YORK – Tesla Motors said Wednesday that founder Elon Musk would invest $100 million in the surging electric car maker, and that it would repay a loan from the U.S. Department of Energy ahead of schedule.

The California maker of high-priced electric vehicles said it would launch a new stock offering of some 2.7 million shares along with $450 million in convertible notes to raise fresh capital.

Musk, Tesla’s chief executive and cofounder, will purchase $45 million in common shares and another $55 million in a private share placement, the company said.

Tesla said it expects to raise some $830 million and use the proceeds to prepay a loan from the US Department of Energy.

The moves came amid a stunning surge in the value of Tesla, which has just a tiny share of the U.S. car market but turned a profit for the first time in the past quarter.

Tesla shares jumped another 1.9% Wednesday to $84.84, giving it a market value of $9.7 billion. With the recent gains, Tesla has become more valuable than Fiat — even though the Italian auto giant produces 200 times more cars than the American upstart does.



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