Tesla prices its secondary offering at $767 a share to raise $2 billion

Business

Elon Musk, chief executive officer of Tesla Inc., speaks during a ceremony at the company’s Gigafactory in Shanghai, China, on Tuesday, Jan. 7, 2020.

Qilai Shen | Bloomberg | Getty Images

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Tesla priced its secondary common stock offering at $767 a share,  raising more than $2 billion, the company said on Friday. The move will likely largely be seen as a success since that is only a slight discount to its previous closing price.

The company said on Friday it will sell 2.65 million shares at that price, which is a 4.6% discount to its Thursday close. CEO Elon Musk will buy $10 million in the offering and Oracle billionaire Larry Ellison will purchase $1 million worth in the offering, the company said.

The shares fell just 1.6% in premarket trading Friday, one day after the stock jumped nearly 5% on news of the offering, a surprise move higher that showed the optimism around the Musk-driven stock. The shares are up 92% this year alone through Thursday.

Goldman Sachs and Morgan Stanley were the lead underwriters, who have the option to buy an additional 397,500 shares in the offering.

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