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.
A true representation of the evolution of automotive engineering and the first fully electric sedan, the Tesla Model S sets the bar higher for any 21st century vehicle. It combines performance, safety and efficiency, achieving the highest safety ratings and longest range for any electric vehicle. With its over-the-air-software updates, the Tesla Model S just keeps getting better and better.
Tesla Model S is based on the Tesla platform. The location of its battery on the floor allows the Tesla Model S to have an extremely low center of gravity – which means that it has a low rollover risk and an enhanced handling and performance. Compared to other performance sedans, the Tesla Model S has a larger crumple zone (because it does not have any engine), and thus it has the ability to absorb energy better in the event of a front-end impact.
The car’s unique electric drivetrain contributes to the car’s safety, aside from the fact that it has a low center of gravity which reduces rollover risk. It also has an NHTSA and Euro NCAP 5-star safety rating, as well as a record of having the lowest likelihood of injury to occupants (tested in the U.S.). Standard safety features include automatic emergency braking, collision warning, blind spot detection, and lane departure warning; there are also optional convenience features which include traffic-aware cruise control, autosteer, autopark, and summon. All these prove that the Tesla Model S is worthy to join the list of the safest cars in the world.
Torque is digitally and independently controlled on all wheels – since the Tesla Model S has two motors (one in the front and the other in the rear) – resulting to an unparalleled traction control under any condition. Tesla’s Electric All Wheel Drive system increases traction which in turn increases efficiency without sacrificing fuel efficiency unlike that of conventional all-wheel drive vehicles.