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FredTMC
Model S VIN #4925
No details still
This is net positive. Maybe not here in AH. But this is what we've been waiting for and Jesselivermore nailed it. Comes out with it a few weeks after ER
This is net positive. Maybe not here in AH. But this is what we've been waiting for and Jesselivermore nailed it. Comes out with it a few weeks after ER
Causalien
Prime 8 ball Oracle
My guess is, the cap raise is already a done deal and it is probably raised at around $207 to $210.
Kind of a love and hate relationship with GS. On one hand, they have power, so we can see them protecting their investment. On the other, GS is known as the squid. Don't sleep with them too much. At least, they are the stabler of all the investment firms you can raise money with.
So, for those of you who have the foresight to get your money ready. You should probably put your vacation on pause and get ready to trade. Unfortunately for me this happened one month too early. I only have 10% of my dry powder ready.
Kind of a love and hate relationship with GS. On one hand, they have power, so we can see them protecting their investment. On the other, GS is known as the squid. Don't sleep with them too much. At least, they are the stabler of all the investment firms you can raise money with.
So, for those of you who have the foresight to get your money ready. You should probably put your vacation on pause and get ready to trade. Unfortunately for me this happened one month too early. I only have 10% of my dry powder ready.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Wow the whole $2 billion in one go huh. Elon raises lower than last time. They're really going for it. Go big or go home I suppose.
At least my avatar did its job.
At least my avatar did its job.
hockeythug
Active Member
$1.4b in stock offering, Musk is selling $600m. Something about Musk exercising options or something according to CNBC. I guess it's to pay taxes.
Morgan Stanley and GS main underwriters.
Morgan Stanley and GS main underwriters.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Don't jump the gun. A lot of shares being bought up by the market at a given price point, likely somewhere between $200-210 (the narrow band we've been trading in for a while now) should create a pretty solid floor for the price? We've seen that phenomenon before when they've issued shares and sold debt.
JRP3
Hyperactive Member
Someone want to dummy this down as to how selling shares increases Elon's stake in the company?
Edit: I see this is for options he has yet to exercise.
Edit: I see this is for options he has yet to exercise.
hockeythug
Active Member
The Blue Owl
Endangerous Herbivore
Bloomberg:
Tesla to offer $1.4 billion shares, remaining to be sold by Elon Musk. Musk is exercising options to buy 5.5m shares and will boost overall holdings on net basis.
one interesting tidbit from the SEC filing:
-tesla had 373,000 model 3 reservations as of 5.15.16 (net of ~8,000 cancellations and 4,200 duplicate reservations from speculators that were deleted)
surfside
-tesla had 373,000 model 3 reservations as of 5.15.16 (net of ~8,000 cancellations and 4,200 duplicate reservations from speculators that were deleted)
surfside
5.5M shares is $1.1B in stock at $205. Does that impact the $1.4B at all? I wouldn't think so but I'm not sure how this works.
From electrek.co:
Full press release:
PALO ALTO, CA — (Marketwired) — 05/18/16 — Tesla today announced an underwritten registered public offering of about $2 billion of common stock. Tesla is offering about $1.4 billion of shares with the remaining shares to be sold by Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options. On a net basis, Mr. Musk will increase his overall Tesla shareholdings through these transactions.
Capital supports accelerated ramp of Model 3 Because of the overwhelming demand that it has received for Model 3, Tesla intends to use the net proceeds from this offering to accelerate the ramp of Model 3. As noted in the Company’s first quarter shareholder letter, Tesla intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate its 500,000 unit build plan from 2020 to 2018. Proceeds may be used for working capital and other general corporate purposes as well.
Elon Musk increases his shareholdings in Tesla In connection with this offering, Elon Musk, Tesla’s CEO, will also be exercising stock options to acquire 5,503,972 shares of Tesla stock. These stock options were granted to Mr. Musk in 2009 and are due to expire in December 2016. Because the value of Tesla stock has increased considerably since 2009, Mr. Musk will owe a significant amount of taxes from exercising these stock options and will fund this tax obligation by selling only the amount of shares needed to do so. To be clear, all cash proceeds from the sale of stock by Mr. Musk will go to the federal and state governments to satisfy the 52% tax withholding on his stock option exercise. In addition, Mr. Musk will be donating 1.2 million shares of his Tesla stock to charity. Mr. Musk is a net buyer of Tesla stock in these transactions.
Morgan Stanley and Goldman, Sachs & Co. are acting as lead joint book-running managers for the offering, with Deutsche Bank Securities, Citibank, and BofA Merrill Lynch acting as additional book-running managers.
Full press release:
PALO ALTO, CA — (Marketwired) — 05/18/16 — Tesla today announced an underwritten registered public offering of about $2 billion of common stock. Tesla is offering about $1.4 billion of shares with the remaining shares to be sold by Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options. On a net basis, Mr. Musk will increase his overall Tesla shareholdings through these transactions.
Capital supports accelerated ramp of Model 3 Because of the overwhelming demand that it has received for Model 3, Tesla intends to use the net proceeds from this offering to accelerate the ramp of Model 3. As noted in the Company’s first quarter shareholder letter, Tesla intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate its 500,000 unit build plan from 2020 to 2018. Proceeds may be used for working capital and other general corporate purposes as well.
Elon Musk increases his shareholdings in Tesla In connection with this offering, Elon Musk, Tesla’s CEO, will also be exercising stock options to acquire 5,503,972 shares of Tesla stock. These stock options were granted to Mr. Musk in 2009 and are due to expire in December 2016. Because the value of Tesla stock has increased considerably since 2009, Mr. Musk will owe a significant amount of taxes from exercising these stock options and will fund this tax obligation by selling only the amount of shares needed to do so. To be clear, all cash proceeds from the sale of stock by Mr. Musk will go to the federal and state governments to satisfy the 52% tax withholding on his stock option exercise. In addition, Mr. Musk will be donating 1.2 million shares of his Tesla stock to charity. Mr. Musk is a net buyer of Tesla stock in these transactions.
Morgan Stanley and Goldman, Sachs & Co. are acting as lead joint book-running managers for the offering, with Deutsche Bank Securities, Citibank, and BofA Merrill Lynch acting as additional book-running managers.
StapleGun
Member
Those numbers aren't related. $1.4 billion is the new public offering, 5.5 million is the amount of option Musk is exercising at the same time and will sell some of them immediately. $600 million is how much Elon will sell but we don't know how many options that is yet.
bought some @ 202.9 too. Hope to catch some more tomorrow under 200.
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