Tesla Motors Inc. on Friday boosted the size of its stock
offering, unveiled just a day earlier, by more than $140
million.
Shares of Tesla, which rose on Thursday after the stock sale was
announced, added another 1% to $244.75 a share in premarket
trading.
The electric-car maker said it now plans to sell about 2.69
million shares, up from the 2.1 million shares it said it would
sell on Thursday. At the offering price of $242 a share, the sale
would raise about $652 million.
That figure excludes an option for the offering's underwriters
to purchase shares. If the underwriters purchase those shares, the
offering would total $750 million.
The new round of fundraising that suggests the cost of
disrupting the global auto industry with its pricey electric
vehicles is more expensive than Chief Executive Elon Musk initially
thought.
The stock sale comes on top of more than $4 billion Tesla has
raised since the beginning of 2013. The auto maker has sold
convertible notes and obtained lines of credit during that period
to fund its ambitious bid to move from niche luxury-vehicle maker
to a sizable force in the car business.
While the Palo Alto, Calif., auto maker consistently has
expanded revenue during that two-year period, its net losses have
deepened. And the company continues to burn large sums of cash on
capacity expansions and new products.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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