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Tesla Motors raises more than $1bn from debt, equity

Tesla Motors has upsized its debt and equity offerings, as the electric car maker capitalises on surging investor demand to raise more than $1 billion in cash.

The US company late Thursday increased the size of the convertible bond offering to $600 million, after increasing it earlier that day to $525 million from an initial $450 million.

Meanwhile on Friday Tesla finalised a per share price of $92.24 for the sale of 3.39 million common stock shares. It had originally planned to offer 2.7 million shares.

With overallotment options included on both offerings, total fundraising is $1.02 billion.

The move comes after Tesla, co-founded by Silicon Valley billionaire Elon Musk, last week reported an $11 million profit for the first quarter – the first profit in the company’s 10-year existence.

The success of the new fund-raising, and the company’s recent share price explosion, point to strong investor belief in Tesla’s long-term prospects.

Hot streak

The California-based company has been on a roll of late, with its new Model S car getting a near-perfect rating from the influential magazine Consumer Reports.

Tesla’s share price is up almost two-thirds since May 8, and some in the market believe that the company could be the next big thing when it comes to the still-young electric car sector.
More businessspectator.com

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