Tesla Prices Increased Stock Offering At $242 a Share

By Tomi KilgoreMarketWatch Pulse

Tesla Motors Inc. said in a regulatory filing Friday that it increased its public share offering to 2,694,934 shares, from the 2.1 million previously announced. The offering was priced at $242 a share, or just 0.2% below Thursday's closing price of $242.51, as the electric-car company raised $652.17 million. Chief Executive Elon Musk has indicated that he would like to buy 82,645 shares of the offering, for $20 million. Net proceeds are estimated to be $641.9 million; if the underwriters of the offering exercise their options to buy additional shares, net proceeds from the offering would be about $738.3 million. "We intend to use the net proceeds from this offering to accelerate the growth of our business in the U.S. and internationally, including the growth of our stores, service centers, Supercharger network and the Tesla Energy business, and for the development and production of Model 3, the development of the Tesla Gigafactory and other general corporate purposes," Tesla said in its filing. The stock, which gained 1% in premarket trade, has climbed 9% year to date through Thursday, while the S&P 500 has edged up 1.2%.

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