deonb
Active Member
Price of secondary apparently at $92.24
https://twitter.com/CNBCMelloy
Should gap up nicely tomorrow.
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Short-Term TSLA Price Movements - 2013
- Thread starter Robert.Boston
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Price of secondary apparently at $92.24
https://twitter.com/CNBCMelloy
Should gap up nicely tomorrow.
carrerascott
FUEL FTR
Daniel Scherer
Junior Member
You correct it was a typo. Here is the latest just now.
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News for 'TSLA' - (DJ Tesla's 2.7M-Share Offering Prices at Tiny Discount Amid Strong Demand -Source)
By Matt Jarzemsky
Tesla Motors Inc. (TSLA) priced a block of its shares at virtually no discount to its latest close, a sign of strong demand for the electric car maker's shares even after a steep runup in price.
The deal was seen as the latest test of investors' enthusiasm for the electric car maker. It gave money managers a chance to grab big blocks of Tesla's stock after a more-than-50% rally in the company's stock price in little over a week.
The company's offering of 2.7 million shares priced at $92.24 a share, a person familiar with the matter said late Thursday. The price represents a less-than-0.1% discount to Tesla's closing price Thursday, and an 8.7% premium to the stock's close Wednesday, just before the deal was announced.
The pricing indicates demand for the offering was particularly strong. Big stock sales typically price at a discount to where the shares traded before the announcement. That helps compensate buyers for the risk that the stock will fall after their purchase, and eases concerns about newly minted shares diluting their ownership.
Tesla is also selling $525 million worth of convertible notes with a coupon expected to range between 1.5% to 2%, according to people familiar with that offering. Final pricing on the deal couldn't immediately be learned late Thursday.
The company is raising funds to prepay a $465 million Department of Energy loan it used to finance development of its Model S car. It also plans to use funds for general corporate purposes and to enter into derivative agreements that would limit the convertible-note sale's potentially dilutive impact on shareholders.
Tesla said Chairman and Chief Executive Elon Musk planned to buy about $45 million worth of stock in the offering and another $55 million of Tesla's shares in a separate deal.
Selling the securities after the rally in Tesla's market value was a shrewd move by its management team, said Charlie Wilson, an associate portfolio manager at Thornburg Investment Management, which owns Tesla shares.
"It's very smart--they're capitalizing on the strong momentum in their share price to take out their DOE loan," he said.
Mr. Wilson said Tesla has "one of the best outlooks for growth of any company I follow" but that he didn't plan to buy stock in the offering, after the shares' recent run.
Goldman Sachs Group Inc. led the stock sale. It also led the convertible bond offering, with Morgan Stanley and J.P. Morgan Chase & Co.
Write to Matt Jarzemsky at [email protected]
Subscribe to WSJ: The Wall Street Journal Wall Street Journal - Wsj.com
(END) Dow Jones Newswires
May 16, 2013 21:42 ET (01:42 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 09 42 PM EDT 05-16-13
Source: DJ Broad Tape
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If you would like to modify or suspend this alert, please login to your Scottrade account and navigate to the "Alerts" page under the "My Account" tab.
News for 'TSLA' - (DJ Tesla's 2.7M-Share Offering Prices at Tiny Discount Amid Strong Demand -Source)
By Matt Jarzemsky
Tesla Motors Inc. (TSLA) priced a block of its shares at virtually no discount to its latest close, a sign of strong demand for the electric car maker's shares even after a steep runup in price.
The deal was seen as the latest test of investors' enthusiasm for the electric car maker. It gave money managers a chance to grab big blocks of Tesla's stock after a more-than-50% rally in the company's stock price in little over a week.
The company's offering of 2.7 million shares priced at $92.24 a share, a person familiar with the matter said late Thursday. The price represents a less-than-0.1% discount to Tesla's closing price Thursday, and an 8.7% premium to the stock's close Wednesday, just before the deal was announced.
The pricing indicates demand for the offering was particularly strong. Big stock sales typically price at a discount to where the shares traded before the announcement. That helps compensate buyers for the risk that the stock will fall after their purchase, and eases concerns about newly minted shares diluting their ownership.
Tesla is also selling $525 million worth of convertible notes with a coupon expected to range between 1.5% to 2%, according to people familiar with that offering. Final pricing on the deal couldn't immediately be learned late Thursday.
The company is raising funds to prepay a $465 million Department of Energy loan it used to finance development of its Model S car. It also plans to use funds for general corporate purposes and to enter into derivative agreements that would limit the convertible-note sale's potentially dilutive impact on shareholders.
Tesla said Chairman and Chief Executive Elon Musk planned to buy about $45 million worth of stock in the offering and another $55 million of Tesla's shares in a separate deal.
Selling the securities after the rally in Tesla's market value was a shrewd move by its management team, said Charlie Wilson, an associate portfolio manager at Thornburg Investment Management, which owns Tesla shares.
"It's very smart--they're capitalizing on the strong momentum in their share price to take out their DOE loan," he said.
Mr. Wilson said Tesla has "one of the best outlooks for growth of any company I follow" but that he didn't plan to buy stock in the offering, after the shares' recent run.
Goldman Sachs Group Inc. led the stock sale. It also led the convertible bond offering, with Morgan Stanley and J.P. Morgan Chase & Co.
Write to Matt Jarzemsky at [email protected]
Subscribe to WSJ: The Wall Street Journal Wall Street Journal - Wsj.com
(END) Dow Jones Newswires
May 16, 2013 21:42 ET (01:42 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 09 42 PM EDT 05-16-13
Source: DJ Broad Tape
The fact that EM decided to pull the trigger on this public offering at this time seem to indicate that insider's view was that market cap of TSLA was close to peaking due to the combination of changing of public sentiment toward the stock and those holding short positions being steadily squeezed and forced to cover.
Off course public offering itself produced additional momentum. There is also SC announcement coming next week, and fumigation should bring the remaining shorts out. This run seem to be getting into the final stage. The question is how long this stage will last and how high will it go. Another two-three weeks? Perhaps another 40% up??
Anybody else willing to go on record?
Off course public offering itself produced additional momentum. There is also SC announcement coming next week, and fumigation should bring the remaining shorts out. This run seem to be getting into the final stage. The question is how long this stage will last and how high will it go. Another two-three weeks? Perhaps another 40% up??
Anybody else willing to go on record?
Call me crazy, but I think it's everybody's best interest for Tesla to succeed. I think when people start getting a macro view of how serious this company is for driving our future; the stock price will absolutely skyrocket to who knows what. In the short run, the goals of all these announcements were to boost Model S interest and get the Tesla name out there.
The payback of the loan and the capital raise were a great brand equity and PR play for Tesla. It proves that the company can succeed on its own and puts a stake in the ground about the confidence Elon has in this company. I think we can hit 50B Market Cap this year based on future outlook and Model S sales (the factory probably needs to do another ramp up).
But now I want to explain what I mean about Tesla Motors being an engine for something bigger than just the automotive industry. Tesla can open up industries and drive more jobs and help revive the economy. This can be argued for most companies, but I think Tesla is the closest right now for the local American economy.
- Tesla can create jobs- directly for manufacturing, servicing, etc. all company related
- Tesla can create new industrys or revive dead ones (think Solarcity growth and Solar power)
- Tesla can rejuvenate businesses through this job creation and provide more business with more road trips taken based on free solar power and longer rests at stops.
- The more cars Tesla sells, the better for the economy (direct and surrounding) and the better for shareholders.
- To this last point, the more sales we get the faster we can get to the mainstream car, to a better infrastructure, and it alleviates a little bit of stress for Elon so he can focus on things like making our lives interplanetary and making our lives more bearable (hyperloop).
- Tesla forces other competitors to innovate with more efficient and more compelling vehicles (reliability, performance, etc.)
So to make a long post short. It's a system. Once people realize that more Tesla cars = the better future for everybody and the fact that this can very well happen... share prices should appreciate and the world can be a better place one Tesla Motor vehicle at a time.
The payback of the loan and the capital raise were a great brand equity and PR play for Tesla. It proves that the company can succeed on its own and puts a stake in the ground about the confidence Elon has in this company. I think we can hit 50B Market Cap this year based on future outlook and Model S sales (the factory probably needs to do another ramp up).
But now I want to explain what I mean about Tesla Motors being an engine for something bigger than just the automotive industry. Tesla can open up industries and drive more jobs and help revive the economy. This can be argued for most companies, but I think Tesla is the closest right now for the local American economy.
- Tesla can create jobs- directly for manufacturing, servicing, etc. all company related
- Tesla can create new industrys or revive dead ones (think Solarcity growth and Solar power)
- Tesla can rejuvenate businesses through this job creation and provide more business with more road trips taken based on free solar power and longer rests at stops.
- The more cars Tesla sells, the better for the economy (direct and surrounding) and the better for shareholders.
- To this last point, the more sales we get the faster we can get to the mainstream car, to a better infrastructure, and it alleviates a little bit of stress for Elon so he can focus on things like making our lives interplanetary and making our lives more bearable (hyperloop).
- Tesla forces other competitors to innovate with more efficient and more compelling vehicles (reliability, performance, etc.)
So to make a long post short. It's a system. Once people realize that more Tesla cars = the better future for everybody and the fact that this can very well happen... share prices should appreciate and the world can be a better place one Tesla Motor vehicle at a time.
Oh wait, I am forgetting, that EM and team most likely already have plans drawn on how to use additional cash beyond re-paying the loan. So what tweets might we see in the near future??
Moving up Model X launch??
Speeding up development of Generation III?
Putting plans for electric truck + new plant to build it on the drawing board??
Citizen-T
Active Member
Okay, I'll call you crazy. That's not going to happen. That's just not how the market works.
People need more punishment before learning. The higher the price the more likely new shorting will occur. But that is good. In part they have helped us to this price and position. We need the shorts
Citizen-T
Active Member
One can dream
As Elon would say, "success is one of the possible outcomes". =)
One can dream
If...I mean *when* the Merc goes into production, Europe production ramps, Japan production ramps and GenIII reservations start we can start talking about 50B.
I believe we will before January. Two reports with apple philosophy of under promise over deliver will do that. The shorts will hwpelp as wellOne can dream
mitch672
Active Member
Elon needs to get the valuation to $50B for his 10 year CEO incentive plan to fully vest, and he's determined to "get 'er done" (to quote Larry The Cable Guy), I think it will take until the Gen 3 is wildly successful, but then we are looking at a nearly $500/share TSLA, this is why you don't want to be caught without your shares, would really blow to miss the end result
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If you're going to quote Larry in an investor thread, get it right.
"get 'er done"
"Getter done" sounds like a status report for a web client.
Don't know if this will happen but a secondary offering can shoot the price up a bit. It makes the float bigger, which increases the liquidity of the stock which can make it more appealing to institutional investors, mutual funds, etc. I've seen this happen in the past. Could happen again tomorrow.
yes- if you correlate it against other information and behaviors it can provide a clue beyond volume, otherwise just useful as another data point of relative volume
Norse
Active Member
JRP3
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