Tesla wants to raise an additional $214 million to build Model X crossover

Article by Christian A., on May 25, 2011

Tesla Motors Inc. is aiming to raise as much as $214 million from a secondary public offering of its shares and a private placement. The electric car maker said that some of its proceeds will be used to develop the Model X crossover vehicle. In the filing, Tesla said that a prototype of the vehicle will be unveiled towards the end of 2011.

It will be commercially introduced in the fourth quarter of 2013. The Model X will be built on the same platform as Tesla's Model S sedan, which is set to start customer deliveries in mid-2012.

Tesla intends to raise up to $158.5 million via a public offering of 6.095 million of its common shares, including 795,000 shares granted to the underwriter in a 30-day option, at $26 a share.

Under a private placement at an identical price, Tesla said that 1.5 million shares will be sold to CEO Elon Musk and 644,475 shares to Blackstar Investco LLC, a Daimler AG affiliate.

The private placement will be able to raise $55.8 million at this offer price. Tesla aims to sell battery packs and chargers to Daimler for its Smart fortwo and A-Class electric vehicles.

There’s also a deal to build an electric powertrain system for Toyota Motor Corp.'s RAV4 EV, which is set to start selling in the U.S. in 2012. Thomson Reuters said that Daimler's Blackstar Investco affiliate had a 7.8% stake in Tesla at the end of last year.

Tesla’s all-electric SUV, the Model X, is slated for an early 2014 release. Production will be done at the company’s facility in Fremont, CA, and it is scheduled to start by the end of 2013. Tesla reveals that the price will remain competitive with other premium SUV brands and it expects to manufacture 10,000 to 15,000 units every year. For this model, the company will be putting in the all-wheel drive dual motor which allows for excellent driving no matter what the weather condition may be.

Customers will be given a choice between a 60-kWh battery or 85-kWh version. With the Model X Performance recording an acceleration time of 4.4 seconds from 0 to 60 miles, it implies that the Model X is faster than most sports cars. In fact, it is faster than the Porsche 911 Carrera. Since it has a low center of gravity, it delivers excellent handling and results in the Model X having a good mix of performance, style, and functionality.

Though it was created utilizing the same platform used for the Model S, its wheelbase is longer and the dimensions of its exterior are closer to that of the Audi Q7. However when it comes to the interior, the space offered by the Model X is 40% larger compared to the Q7.

In terms of numbers, it can fit seven adults plus some luggage. One unique feature of the Model X is its Falcon Wing doors. Since it opens up and above the roof, a passenger can stand in the second row and then proceed to the third row. On the dashboard is a touchscreen with a 17-inch display that shows the controls for the driver, vehicle apps, onboard charging, and even internet connectivity.

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