Tesla Motors Inc (NASDAQ:TSLA) announced that it intends to offer, subject to market and other conditions, $500 million of additional shares of common stock in an underwritten registered public offering. In addition, Tesla intends to grant the underwriters a 30-day option to purchase up to $75 million of additional shares of common stock.
Elon Musk, Tesla’s CEO, intends to purchase $20 million of common stock in this offering at the public offering price.
Tesla intends to use the net proceeds from this offering to accelerate the growth of its business in the United States and internationally, including the growth of its 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.
Goldman, Sachs & Co. and Morgan Stanley are acting as lead joint book-running managers for the offering, J.P. Morgan and Deutsche Bank Securities are acting as additional book-running managers for the offering, and BofA Merrill Lynch and Wells Fargo Securities are acting as co-managers. (Original Source)
Shares of Tesla Motors closed yesterday at $238.17. TSLA has a 1-year high of $291.42 and a 1-year low of $181.40. The stock’s 50-day moving average is $262.81 and its 200-day moving average is $231.05.
On the ratings front, Tesla Motors has been the subject of a number of recent research reports. In a report issued on August 7, Standard & Poor’s analyst Efraim Levy downgraded TSLA to Sell, with a price target of $225, which implies a downside of 5.5% from current levels. Separately, on August 6, Goldman Sachs’ Patrick Archambault maintained a Hold rating on the stock and has a price target of $234.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Efraim Levy and Patrick Archambault have a total average return of 12.1% and 13.6% respectively. Levy has a success rate of 69.7% and is ranked #731 out of 3734 analysts, while Archambault has a success rate of 57.4% and is ranked #537.
Overall, 3 research analysts have rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $301.09 which is 26.4% above where the stock closed yesterday.
Tesla Motors Inc designs, develops, manufactures and sells high-performance fully electric vehicles and electric vehicle powertrain components.