Tesla seeks to raise over $600 million through stock sale

Global Equities Research reiterated their overweight rating on shares of Tesla Motors (NASDAQ:TSLA) in a report issued on Sunday, Marketbeat.com reports. The stock was sold at an average price of $264.53, for a total transaction of $396,795.00.

The maximum offering price of these shares has been set by Tesla at $242; this should raise an estimated net proceeds of around $642 million.

That report, combined with a similar missal from Deutsche Bank, saw shares in Tesla Motors fall from their highs above $280 back down to less than $260.

In response to the offering, Tesla’s stock prices rose 1% to $244.75 per share. The 52-week high of the share price is $291.42 and the company has a market cap of $30,915 million. The disclosure for this sale can be found here. Jefferies Group initiated coverage on shares of Tesla Motors in a research note on Tuesday, May 5th. The 50-day moving average is $262.16 and the 200 day moving average is recorded at $231.14.

Tesla Motors Inc (TSLA) has a price to book ratio of 43.05 versus Consumer Goods sector average of 1.35. No matter, how much cars he sells this year, Tesla is safe at-least for about coming two years because nothing that happens publicly with the company will matter until it delivers Model 3, a pure electric vehicle that is expected to make debut into market in 2017.

Shares ticked up 0.1% early Monday.

TSLA reported last quarter earnings on August 05. An app-based, on-demand mobility service could more than triple Tesla’s potential revenues by 2029, the analyst estimates. S&P 500 has rallied 6.56% during the last 52-weeks. Tesla shares jumped 5.4% in premarket trading on the stock market today to 256.73.

Tesla may have to continue raising funds and delay profitability as it continues to undertake cash-draining vehicle launches, the Gigafactory project, and the startup of its new energy-storage business. The Company designs, develops, manufactures and sells electric vehicle powertrain components to other automotive producers. If Tesla wants to succeed on its mission of accelerating the world’s transition to sustainable transport, the move to a shared mobility model is critical, he argues. Similarly, Tesla Energy – the energy storage products to power homes and large facilities – will contribute $87 to Tesla’s stock price. The technology of the Company’s includes the applications and electronics management systems, security systems, charge reconciliation systems, battery engineering for vibration and environmental durability, robotic manufacturing procedures, customized motor design and cooling systems required to deal with battery and vehicle functionality.