Tesla CEO Elon Musk to buy $25M in stock as company aims to raise $2.7B
Tesla CEO Elon Musk intends to purchase $25 million in company stock as the embattled electric-car maker looks to raise roughly $2.7 billion in capital.
“Elon Musk, our Chief Executive Officer, has indicated his preliminary interest in purchasing up to 102,880 shares of our common stock in the concurrent common stock offering for a purchase price of approximately $25.0 million at the public offering price,” the company said in a filing on Friday.
The company’s planned offering increased in size compared to one day earlier, when it said it would seek to raise up to $2.3 billion in a bond and stock sale. Tesla will offer $1.6 billion in debt that will come due in 2024.
Musk initially said he intends to purchase $10 million in additional stock.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 170.18 | +8.05 | +4.97% |
The Tesla CEO long resisted the notion of raising more capital despite the company’s heavy spending to ramp up production of its flagship Model 3 sedan.
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However, Musk acknowledged that there was “merit to the idea” of raising money in a conference call after a rough quarterly report. The company saw a major drop in car deliveries and saw its cash stockpile drop more than 40 percent to its lowest level in three years.