NEWS: Tesla to Issue New Stock and Pay Off Government Loan

May 16, 2013
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Tesla plans to offer 2,703,027 shares of common stock and $450 million in convertible senior notes due in 2018 to raise money toward its outstanding loan from the Department of Energy.
Tesla CEO and co-founder Elon Musk will purchase $100 million worth of the shares himself, with $45 million purchased from the common stock offering and $55 million bought directly from Tesla in a private sale. The underwriters will have a 30-day option to purchase up to 405,454 additional shares and $67.5 million worth of convertible notes, which can be converted into cash or shares of Tesla stock when they mature.
Tesla stock ended trading on Wednesday at $84.84 a share, up significantly from last week's price in the mid- to high $50 range. The surge in price is attributable to Tesla posting its first quarterly profit, with the company generating $11.2 million net income in the first quarter of 2013.
Though Tesla's revised financing option may have lead to higher consideration among luxury buyers, the brand is still only selling variations of one vehicle. Whether Tesla can maintain its momentum remains to be seen.
Source: Tesla

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2013 Tesla Model S

40 KWH RWD 4-Dr Hatchback ELEC
starting at (MSRP)
$59,900
Engine
0.0L ELEC
Fuel Economy
93 City 96 Hwy
2013 Tesla Model S