Elon Musk who has already committed to personally to guaranty resale values for Model S buyers is again putting his money where his mouth is.
The maverick CEO and Tesla co-founder intends to purchase $100 million worth of common stock announced as being made available for public sale today and expected to raise about $830 million for the company. Plans are also to use some of the proceeds to pay off Energy Department loans in full with interest.
In recent days, TSLA stock has been on fire rising from below $50 per share just a couple weeks ago to $84.84 today.
The 2,703,027-share public offering will consist of a $450 million aggregate principal amount of convertible senior notes due 2018 in concurrent underwritten registered public offerings plus there is a 30-day option to buy an additional 405,454 shares of common stock and $67.5 million in aggregate principal amount of the notes
The proceeds will go toward paying the cost of convertible hedge note transactions and general corporate purposes, and and of course, Tesla will be free from $465 million in indebtedness to Uncle Sam.
Of the approximately one-eighth of the total sale Musk will personally purchase, $45 million would be in common stock, and approximately $55 million would be bought directly from Tesla in a subsequent private placement due to the waiting period requirements of the Hart-Scott-Rodino Act.