Tesla has increased the size of its public stock offering and now could raise up to $783 million through the sale of the company s shares, according to a new regulatory filing.
Palo Alto-based Tesla today filed a prospectus with the Securities and Exchange Commission that outlines a plan to raise at least $652 million. On Thursday, Tesla had filed papers with the SEC for a stock sale that would raise at least $500 million. The current sale is based on a Tesla stock price of $242.
Tesla said it was planning to sell 2.6 million shares, according to the latest prospectus. Thursday, the maker of electric vehicles said it was planning to sell 2.1 million shares.
If underwriters exercise their options to buy all of the shares allotted to the public stock sale, the offering could raise $750 million.
Net proceeds to Tesla would be at least $641.9 million, the auto maker calculated. The net proceeds could reach roughly $738.3 if the underwriters for the stock sale exercise options to buy all of their allotments.
We intend to use the net proceeds from this offering to accelerate the growth of our business in the U.S. and internationally, including the growth of our stores, service centers, Supercharger network and the Tesla Energy business, and for the development and production of Model 3, the development of the Tesla Gigafactory and other general corporate purposes, Tesla said in the prospectus.
The stock sale would be in addition to the more than $4 billion that Tesla has raised since the start of 2013.
Tesla could soon face direct competition from Fisker Automotive, a maker of electric vehicles. Fisker had issues with the vehicle s batteries, which were ordered recalled. Fisker has signed a lease in the Southern California city of Moreno Valley to occupy a new manufacturing facility.
Fisker said it hopes to begin sales of the vehicles in 2016. Fisker plunged into bankruptcy in 2013 after selling 2,500 cars at a price of $100,000 each.
Over the 12 months that ended in June, Tesla lost $520.8 million on revenue of $3.7 billion. Tesla in recent years has steadily increased revenue but has also produced a string of quarterly losses.
Tesla CEO Elon Musk and a company electric vehicle. Photo credit: Associated Press