Tesla launches $2 billion stock offering Musk said ‘doesn’t make sense’ – The Verge

Tesla launches $2 billion stock offering Musk said ‘doesn’t make sense’ – The Verge

Elon Musk
Tesla has announced that it will sell $2 billion of common stock in a new public offering, just days after CEO Elon Musk said it wouldn’t “make sense” to raise more cash.
The company says it plans to use the proceeds from the offering “to further strengthen its balance sheet, as well as for general corporate purposes.”Musk will buy up to $10 million worth of stock in the offering, while billionaire Oracle founder Larry Ellison — who was appointed to Tesla’s board of directors in late 2018 — will buy up to $1 million, the company said.On a January 29th call with investors, Musk and Tesla CFO Zach Kirkhorn were asked whether, given the recent jump in the company’s stock price, Tesla would consider raising more money now to “substantially accelerate the growth in production (i.e. Gigafactories), investments in supercharger and customer service.”Musk said Tesla is “spending money as quickly as we can spend it, sensibly.”Musk said in response that Tesla is “spending money as quickly as we can spend it, sensibly, ” and that the company is generating positive cash flow (meaning there’s more money coming into Tesla than going out). That same day, Tesla announced it generated $1.1 ....



The company recently started Model 3 production at its newly opened Gigafactory in China, but it has not completed building out the facility. It’s also started work on a new factory in Germany. The company’s compact SUV, the Model Y, is ahead of schedule and will start shipping to customers this spring, meaning Tesla has to once again ramp up production of what will likely be a popular product. Tesla said on January 29th that it intends to start a small production run of its electric big rig, the Tesla Semi, this year. The company is also trying to put some new energy products into mass production, like its long-teased solar glass roof. .

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