(Bloomberg) – Tesla Inc. investors who started selling shares on Thursday received the highest discount the electric car maker has offered in its 10-year history as a public company.
Tesla’s secondary offering of $ 2 billion is $ 767 per share, 4.60% lower than Thursday’s closing price. This discount is more than ten times higher than Tesla’s last second offer in May and quintupled the average discount granted on the seven previous share sales.
Read more: Tesla Money Raise ensures that the virtuous circle of $ 14 billion rolls
An increase of 83% this year prior to the launch of the offer may have contributed to the more buyer-friendly pricing terms, not to mention the latest news about product recalls and new regulatory controls. But Elon Musk is unlikely to lose any sleep on this matter as the price per share is still more than twice the company’s previous capital increases.
Six of Tesla’s previous secondary offerings, which ran between 2011 and 2019, were offered at discounts below 1.0%. Bullish bidding has given Tesla a decade of unprecedented price hikes.
Shares fell 3% to about $ 780 before trading on the stock exchange, above Thursday’s offer price.
To contact the reporter about this story: Drew Singer in New York at [email protected]
To contact the editors responsible for this story: Brad Olesen at [email protected], Courtney Dentch
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