In a new SEC filing published after market close today, Tesla confirmed that CEO Elon Musk exercised stock options to purchase 532,000 shares of Tesla’s common stock, which is worth a little more than $100 million based on today’s closing price of $191. Expand Expanding Close
During the past few months, rooftop solar installer SolarCity has been watching its stock price plummet, along with most of the solar industry. During the past week, Chairman Elon Musk bought 3 blocks of shares between $25.20 and $26.45 to add over 500,000 shares to his now total of 21.3 million shares or about 21% of the company.
Now just a few days after the disclosure of the stock purchase, we learn through a press release from Silver Lake Kraftwerk that Musk invested an additional $10 million in the company through convertible senior notes along with $100 million from Silver Lake and $3 million from SolarCity CEO and Musk’s cousin, Lyndon Rive. Expand Expanding Close
The global stock market had a horrible day. Even Wall Street darlings like Google and Apple saw billions of dollars trimmed off their market capitalizations. A surprising exception, SolarCity, the largest residential solar installer in the US, managed to go against the grain and closed the day with an impressive 7% gain thanks to its Chairman and major shareholder Elon Musk who bought another $5 million worth of shares during the stock’s price fall to add to his holding in the company now worth over $900 million of SolarCity’s total market cap of just over $4 billion. Expand Expanding Close
Tesla Motors sent out a press release this morning to announce a $500 million public stock offering. During the conference call discussing their second quarter financial results earlier this month, Elon Musk, Tesla’s CEO, let analysts know that the company didn’t need to raise money, but it could be a good idea to do it anyway in order to mitigate risk as the company increases its capital expenditure, which they think could reach $1.5 billion this year.
The company intends to use the money from the offering for “the growth of its stores, service centers, Supercharger network and the Tesla Energy business, and for the development and production of Model 3, the development of the Tesla Gigafactory, and other general corporate purposes.”