tesla motors to raise $500 million in stock offering - energy storage devices

WASHINGTON —
In the face of a series of expansion costs
Car maker Tesla Motors said Thursday it will raise $0. 5 billion (U. S. )
By selling additional shares of common stock.
Tesla's statement also said that CEO Elon Musk said that as part of the release, he personally plans to add a $20 million stake in Tesla.
In addition, Tesla said the underwriters will have 30-
Purchase Daily options for additional common stock up to $75 million.
Tesla shares responded positively to the news.
They get up at about 2.
Seven cents or six dollars for midday trading. 37 to $244. 54.
But some of Tesla's observers are hesitant.
"Cash injection is expected to have been around for some time and is a necessary condition to keep Tesla solvent," said Carl Brewer, an analyst at Kelly's Blue Book . ".
"Between half --a-
The company will issue billions of dollars in stock and provide $0. 75 billion in credit, which will significantly extend its financial lifeline.
However, as a 12-year-
Old companies that have never been profitable have to question when the golden pot will finally come true at the end of this long rainbow.
Last week, Tesla reported that its second
Quarterly losses nearly doubled to $184.
Compared with $61, 2 million.
The same period last year was 9 million.
It blames the cost of expansion.
At the same time, revenue increased by 0. 878 billion to US dollars.
Tesla based in Palo Alto, California
The company said it would use capital injection to open more retail stores and service centers.
The company says it will also strengthen the high level of its network
Speed "supercharger", invest in the development of cheaper Volkswagen-
Market cars named Model 3 Model 3 in a few years, and used the proceeds to Tesla's huge battery "Gigafactory" built outside Nev Reno ".
Some of the money will be used for general corporate purposes.
While Tesla faces huge costs associated with electric vehicles, it sees it as a lucrative side business in fixed energy storage devices.
These will be battery packs for homes, businesses and utilities that can store solar energy generated during the day for evening use.
Tesla will buy through the chief managers of Goldman Sachs, Goldman Sachs and Morgan Stanley. —