Tesla, the electric car manufacturer, recently announced they finished a $2.7 billion stock offering and convertible notes. The company also stated that this recent fund raising round was oversubscribed which gives them more funds to increase production of their Model 3 vehicle as well as prepare for new projects like their Tesla Semi and the Model Y.
Tesla also said that they sold $860 million worth of their stock and $1.84 billion of their debt which was after underwriters bought 15% of both. Some recently financial paperwork the company filed also revealed that this round was underwritten by Bank of America, Societe Generale, Wells Fargo, Goldman Sachs, Deutsche Bank, Morgan Stanley, Credit Suisse, and Citigroup.
This latest fund raising round was finished only one day after CEO Elon Musk announced he has bought $25 million of Tesla stock at $243 per share. Musk now owns nearly 34 million shares, around 19.5%, of the company.
The company is prepping to increase their efforts within the electric vehicles space as other companies like BMW are also investing more in the electric car market. Even after BMW reporting earnings down 75% when compared to lasted year, they are still focused on creating electric vehicles.
BMW currently holds a 11% market share for luxury vehicles within the United States, almost double Tesla's share according to the company. Every model of BMW already competes directly with several of Tesla's current models, however Tesla only currently has three models of cars to compete within the market. Tesla does claim that their Model S outperforms BMW's similar model car.
BMW may currently have a larger luxury market share, but they are further behind Tesla when it comes to selling actual electric cars. Tesla was able to ship 63,000 electric vehicles into market so far in 2019, whereas BMW has shipped around 27,000 cars. However, BMW believes their sales will increase once their "25 by 25" program begins. This program hopes to produce 25 electric vehicle models by 2025.
With Tesla receiving all this new funding, the Chairman of BMW, Harald Kruger recently stated how confident he was that BMW will continue to compete: “In Europe, our percentage of electrified vehicles delivered is three times the industry average. In 2018, we were the market leader for electrification in both Europe and Germany—not just in the premium segment, but in the market as a whole. We plan to maintain a leading position going forward—both in Europe and worldwide,” he said.