As Tesla Raises Capital, Elon Musk Doubles Down - Forbes Tesla announced it will sell 2.7 million shares and $450 million in convertible senior notes that holders will be able to convert into cash or common stock. Musk intends to purchase $45 million worth of the common stock offering — a bit more than 500,000 shares at Wednesday’s prices — and spend another $55 million to buy stock directly from Tesla in a subsequent private placement. He already owns 27 million shares, or 23.6% of the outstanding stock. One use for the new capital will be to pay off, with interest, the balance of a $465 million federal loan from the U.S. Department of Energy.
Interesting. I had heard of the sale and paying off the loan. Good to see Musk buying more as the CEO putting in another 100million that is generally a good sign. That will also give them a decent chunk of working capital (less than half of it will pay off the loan). Anyone know what is their burn rate? (I know Q1 was profitable on paper, but the pipe will likely empty in 4-5 months then it may be a bit leaner for a while. Good to bank it when they can.
