The report noted that Elon Musk will purchase 1,500,000 shares of common stock directly from Tesla at the public offering price. On top of that, Daimler AG’s Blackstar Investco unit will purchase “up to approximately 644,475 shares” directly from Tesla at the public offering price.
What is interesting is that the only underwriter is Goldman Sachs. The company said that it intends to use a portion of the net proceeds to fund the development of its Model X crossover vehicle.
Shares of secondary offerings usually tank a stock. When a CEO and a key business partner announce that they are also buying direct stock to increase ownership, that often changes the game. Tesla shares are up 4.6% at $27.95 on more than 2 million shares after about two hours of trading.
JON C. OGG
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