Tesla stock was on its way up Friday on news that the company is increasing its stock offering.
The news from Tesla (NASDAQ:TSLA) has the company offering an additional $650 million worth of Tesla stock. Company CEO Elon Musk is also planning to purchase $10 million worth of shares from this new offering.
The new offering from the company that has Tesla stock up today also includes convertible senior notes. The company is offering $1.35 billion worth of senior notes that will be due in 2024 in concurrent underwritten registered public offerings.
It’s worth pointing out that the lead joint book-running managers of this Tesla stock offering are Goldman Sachs and Citigroup. BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse are also serving as extra book-running managers. Societe Generale and Wells Fargo Securities are co-managers for the offering.
The new Tesla stock and senior notes offering also includes an option for underwriters to purchase an additional 15% of each offering. They will have up to 30 days to take advantage of this offer.
According to Tesla, the new stock and senior notes offering could result in the company bringing in a total of $2.30 billion in new funding. This includes if underwriters exercise their rights, but doesn’t account for discounts and expenses.
Tesla says that it already has plans for these funds. The electric car company will be using the money from this Tesla stock offering to “further strengthen its balance sheet, as well as for general corporate purposes.”
TSLA stock was up 4% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.