Covering The Economy

Sep 28, 2012 10:28 AM

Tesla Prices Offering At $28.25 Per Share

PALO ALTO, Calif. (AP) - Tesla Motors Inc. said Friday that it priced its offering of 6.9 million shares of common stock at $28.25 per share.

The price represents a less than 1 percent discount to the Palo Alto, Calif.-based electric car company's Thursday closing stock price of $28.49. Tesla also granted the offering's underwriter, Goldman, Sachs & Co., a 30-day option to buy up to an additional 1 million shares of common stock.

Tesla shares rose 54 cents, or 1.9 percent, to $29.03 in morning trading Friday. Its shares are down 27 percent from a 52-week high of $39.95 in late March.

Tesla is selling all of the shares in the offering, which is expected to close on or about Wednesday, the company said.

As part of the offering, Tesla CEO and co-founder Elon Musk has said he will buy up to 35,398 shares of common stock at the public offering price for a total of about $1 million.

Tesla said it plans to use the net proceeds from the offering for general corporate purposes.

(Copyright 2012 The Associated Press. All rights reserved.)

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