Benzinga Breakdown: The Pricing Of Tesla's Offering

  • Tesla Motors Inc TSLA is raising $2 billion through a stock offering officially priced at $215/share.
  • Net proceeds to shareholders will be $213.2202/share
  • Tesla's valuation has undergone much scrutiny in the past couple days.
  • Funds raised would be used to ramp up production of the hotly anticipated Model 3.

Other recent news items

Interestingly, after going bearish on equities, Goldman Sachs Group Inc GS upgraded Tesla to a Buy with a $250 price target. The call raised eyebrows because Goldman helped underwrite Tesla's offering, but some doubt there was any upside for the investment bank to intentionally raise the price.

Analyst/Pundit commentary

On CNBC, Standpoint Research's Ronnie Moas and Kevin O'Leary ridiculed Tesla's valuation. "It's a car company," O'Leary quipped. Despite the positive price action since news of the offering and Goldman's upgrades, UBS analyst Colin Langan maintained both a Sell rating and a $160 price target on Tesla.

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