Tesla sets stock offering price at $242 per share

Tesla Motors Inc. on Friday boosted the size of its stock offering, unveiled just a day earlier, by more than $140 million.

Tesla’s shares rose as much as 3.5 percent, before giving up some gains to trade up 0.8 percent on Thursday afternoon. For additional video content, click the “video” tab at the top of this page.

The same document listed the intent of Musk to buy an aggregate of 83,974 shares worth some $20 million as part of the same common stock share sale, priced at the same $238.17 dollar value per share. We eat our own cooking.

What will the fresh capital be used for?

This includes Tesla retail stores, its unique charging network, the upcoming Model 3, the company’s Gigafactory, a massive battery factory in Nevada, and other general corporate ventures. Tesla Motors now has an average rating of Hold and a consensus target price of $281.33.

Aside from growth, the company will also be using the funds to develop some of its projects.

Tesla Motors temporarily closed its factory and evacuated employees Friday after a crane-truck accident caused a power outage there, a PG&E spokesman said.

Moreover, Tesla Motors is planning to launch a new vehicle dubbed Model X next month. However, right after a short period, the company felt the need to raise capital by selling equity.

Underwriters will receive $9.7 million of the $652 million total proceeds.

While the share dilution caused by a $500 million offering is unfortunate, the company has historically proved to investors that management is more than capable of prudently investing capital in growth measures.

No one should have been surprised by Tesla’s decision to sell stock, and no one should be surprised that it’s now going to sell even more stock. (NASDAQ:TSLA) have given stock price projections where they expect the number to be within the next year. And he’s doing so to a greater extent than the great majority of CEOs of publicly traded companies.