Tesla (TSLA) to Offer $2B of Common Stock

Tesla (NASDAQ: TSLA) is offering about $2 billion of common stock. Tesla will offer $1.4 billion and CEO Elon Musk will offer the rest.

Tesla is offering 6,800,000 of the shares to be sold in the offering. The selling stockholder identified in this prospectus supplement is offering an additional 2,777,901 shares.

The offering is being led by Morgan Stanley, Goldman Sachs, Deutsche Bank, Citigroup and BoA/Merrill Lynch.

The news is not a complete surprise, as with its recent earnings report the company stated: "Given our plans to advance our 500,000 total unit build plan, essentially doubling the prior growth plan, we are re-evaluating our level of capital expenditures, but expect it will be about 50% higher than our previous guidance of $1.5 billion for 2016. Naturally, this will impact our ability to be net cash flow positive for the year, but given the demand for Model 3, investing to meet that demand is the best long-term decision for Tesla."

Below is the offering prospectus:

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