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As part of the of its $2.31 billion worth of stock offering, Musk himself purchased 13,307 TSLA shares at a price of $767 per share worth a total of $10 million. Elon Musk raising his stake in Tesla is a vote of confidence for the investors.
On Wednesday, February 19, electric car maker Tesla Inc. (NASDAQ: TSLA) revealed the closure of its common stock offering in the open markets. Soon as the announcement came, the TSLA stock skyrocketed above $900 levels in just a few trading hours.
In the stock offering, the automobile giant raised a whopping $2.31 billion by selling 2.65 million shares to the public. At the same time, the deal’s underwriters purchased 397,500 shares amounting to $300 million. Besides, Tesla CEO has been one of the key purchasers of the TSLA stock in the deal.
Reportedly, Elon Musk purchased around $10 million worth of Tesla (TSLA) stock as a vote of confidence to the investors. The filing by the U.S. Securities and Exchange Commission (SEC) shows that Elon Musk purchased 13,307 shares worth $10 million. This comes to the per-share value of $751.
Several analysts have praised Tesla for its stock offering in the market. Considering that the TSLA stock was having a massive run on Wall Street, analysts say it was the right time to raise funds.
The major rally in the TSLA stock arrived soon the company announced its Q4 2019 beating street estimates by a good margin. The result speaks volumes about the massive transformation in Tesla’s manufacturing capabilities.
While announcing the results, Tesla said that it targets to roll-out 500,000 car units across all its Tesla models by the end of 2020.
Elon Musk’s Expansion Plans for Tesla
Company CEO Elon Musk is known for his aggressive work ethic in the market. The business tycoon has undertaken some mammoth projects and goes all-chips-in to accomplish it. The same goes for Tesla!
Just at the start of 2020, Elon Musk announced the commencement of production at its Tesla gigafactory in Shanghai. However, with the outbreak of the coronavirus, the factory was shut down for a week or so (and then came back) owing to the local government order. But the Shanghai municipal government has assured their cooperation to Tesla and things seem to be resuming back to normal.
Besides, Tesla also plans to use the $2.31-billion funds to open a new gigafactory in Germany to cater to the European market. The company is surely eyeing for a global footprint with its recent success.
Additionally, Tesla’s recent success has left behind American automobile giants like General Motors Company (NYSE: GM), Ford Motor Company, (NYSE: F) and Fiat Chrysler Automobiles NV (BIT: FCA). Interestingly, Tesla’s market cap is much more than the combined market cap of these three companies. With its global expansion plans, Tesla will look to take-on giants like Volkswagen AG (ETR: VOW3) and Toyota Motor Corp.(TYO: 7203) in the global markets.
As on Thursday closing, TSLA stock is trading at $899. With a sharp drop in the price early in the day, it managed to recover significantly by the day-end.