Tesla increases the size of its offer and says Elon Musk will buy more

Tesla announced on Friday that it has increased the size of the stock and bond offer announced one day by the electric car builder and that CEO Elon Musk had the intention of saying it would be a good idea. buy even more stock.

The company currently sells 3.1 million shares priced at $ 243 per share through intermediaries of Goldman Sachs and Citigroup underwriters, according to the rankings. This represents an increase over the 2.7 million shares that were to be sold as part of the offering. The company also announced that it would bring its convertible note offering to $ 1.6 billion, according to the filed documents.

Musk now intends to buy up to 102,880 shares worth $ 25 million, more than double its previous indication of buying 41,896 shares. The updated figures bring the total value of the investment to about $ 2.7 billion, up from the $ 2.3 billion expected after Thursday's announcement.

"As for the rise of the transaction, it is usually motivated by increased demand.When they buy the deal and that it ends up getting bigger, it's usually because it's there's a big demand, "CNB analyst Christopher Eberle told Nomura Instinet.

"As for why now? I think a better question is" why not now? "After the day of autonomous driving, the telegram was rather clear: they were going to make an increase," added Eberle. "Rather than let the rumors dictate the movement of shares, it is best to stop delaying the inevitable and to do so.This gives them a little respite for the next quarters in the case of the" cash flow ". a weaker demand environment. "

Thursday's Wall Street's positive reception on Tesla's plans to raise additional capital may have prompted subscribers to increase the size of the offering. Tesla shares rose 1.2% in pre-sale transactions, after a 4.3% rise on Thursday, to close at $ 244.10.