Tesla to Issue More Stock, Pay Off Energy Loans with Proceeds
May 16, 2013 1:58 PM
comment(s) - last by
Elon Musk plans to buy $100 million of shares of common stock at the same public offering price
Tesla Motors wants to sell about $830 million in shares in order to
repay its federal loan
in the shortest amount of time possible.
In a U.S. regulatory filing and press release, Tesla said that it plans to use $450 million in convertible senior notes (which are due in 2018) and sales of 2.7 million shares (valued at about $229 million at yesterday's closing price) to pay back its $465 million federal loan from the U.S. Department of Energy (DOE).
Tesla received the federal loan in 2009 through the Advanced Technology Vehicles Manufacturing program. Back in March of this year, Tesla received permission to pay off the $465 million five years ahead of schedule -- which would put it at mid-2017 instead of 2022.
Tesla CEO Elon Musk, which is Tesla's biggest shareholder, even announced that he plans to purchase $100 million of shares of common stock at the same public offering price. He will invest about $55 million in a private placement and $45 million in the public sale.
This year has certainly been kind to Tesla. Tesla began shipping 500 Model S' a week in March, exceeding the sales outlook of 4,500 posted in the February shareholder letter. To complement these sales, the electric auto maker has
worked hard to please customers
with a new battery replacement program as well as new service programs, which feature valet service for customers who need to send their Model S' to the shop.
Earlier this month, Tesla reported
its first profitable quarter
. For Q1 2013, Tesla reported a net income of $11.2 million, which was quite a jump from an $89.9 million loss in the year-ago quarter. Excluding certain items, Tesla's profit came in at 12 cents a share, which was a boost from a loss of 76 cents a share in Q1 2012. Analysts expected a profit of about 4 cents a share.
Revenue also saw a huge year-over-year boost, totaling $562 million (up from $30.2 million in the year-ago quarter).
Tesla even managed to sell 4,900 Model S sedans in the first quarter, beating its previous projections of 4,500. Model S deliveries for the entire year should total 21,000, which slightly exceeds previous forecasts of about 20,000.
"2013 is off to a strong start, and we look forward to seeing more of you on the road in a Model S this year," said Tesla earlier this month.
Tesla shares rose as much as 12 percent. The shares gained 8.1 percent to $91.72 at 11:45 a.m. in New York time after reaching a high of $95.
This article is over a month old, voting and posting comments is disabled
5/16/2013 4:13:14 PM
There are several companies working on electric motorcycles, including Zero and Brammo.
5/16/2013 9:31:27 PM
Yeah but, if I had the money, I would buy a Tesla before I bought a Fisker and for the same reason I'm really excited about what they could do in the electric motorcycle world. :)
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
Tesla Reports First Profitable Quarter; Hires Aston Martin's Chief Vehicle Engineer
May 8, 2013, 8:07 PM
Tesla Reveals Generous Model S "Hassle Free" Battery Replacement, Service Programs
April 29, 2013, 12:26 PM
Tesla Announces Loan Repayment, But Delays Model X Crossover EV
March 11, 2013, 4:37 PM
Ford, Toyota, and Universal Pictures Celebrate "Back to the Future Day' in Style
October 21, 2015, 4:19 PM
Consumer Reports Flexes Muscle, Hits Slumping Tesla Motors Stock
October 20, 2015, 4:13 PM
Debunked: Beneath the Lies, Nigerian "Pee Generator" Is Still Pissing Into the Wind
October 19, 2015, 7:53 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information