Tesla Announces $2 Billion Stock Offering to Expand Production
On May 18, 2016, premium electric automobile manufacturer Tesla announced an underwritten registered public offering of approximately $2 billion of common stock. The company is offering about $1.4 billion of shares, with the remaining shares to be sold by Tesla CEO Elon Musk. Wilson Sonsini Goodrich & Rosati is representing Tesla in the offering.
According to a company press release, Tesla intends to use the net proceeds from the offering to accelerate the ramp of Model 3 due to the overwhelming demand that it has received for the vehicle. Proceeds also may be used for working capital and other general corporate purposes.
For more information, please see Tesla's press release.