Tesla shares increased by almost 3 percent

Article by Christian Andrei, on October 1, 2012

As Tesla Motors Inc. expanded its stock offering, its shares had increased by almost 3%. The electric-car maker is being led by CEO Elon Musk. For the day, Tesla grew 2.8% to close at $29.28. In a regulatory filing, the company said that it predicts that it will sell 6.93 million additional shares at $28.25 each, an increase of 2.58 million from what it reported in a Sept. 25 filing.

The earlier filing didn't list a price. Tesla said that it estimates that it will get net proceeds of $192.7 million, or $221.6 million if the underwriter, Goldman Sachs Group Inc., exercises its option to buy more shares in full. Musk had lowered the output forecast for the Model S sedan. He said that he will buy up to 35,398 shares for around $1 million.

Alan Baum, principal of auto-industry forecaster Baum & Associates in suburban Detroit, said that the stock is being supported by the quality and reviews of the Model S, a multiple stage product plan beyond the Model S and Model X, and the quality of the operation. Tesla anticipates the delivery of 200 to 225 Model S cars in the third quarter and 2,500 to 3,000 in the fourth quarter.

Tesla made a previous prediction of 5,000 Model S deliveries this year. Tesla is relying on the demand for the Model S, which is priced from $57,400, to support the automaker in earning its profit for the first quarter. The Model X is a sport-utility vehicle targeted for 2014.

Topics: tesla, shares

If you liked the article, share on:


Login or Create new account to add a comment!


Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016