(Bloomberg) -- Tesla Motors Inc. said the underwriters of its secondary stock sale exercised their option for additional shares, boosting the proceeds to an estimated $738.3 million.
The electric-car company sold 3.1 million shares at $242 each to give itself a cash cushion as it prepares to begin deliveries of its Model X SUV. The smallest and youngest publicly held U.S. automaker faces major capital spending as it expands globally and builds a large battery factory near Reno, Nev.
Tesla announced plans on Aug. 13 to sell 2.1 million shares, with an underwriter option to buy as many as 315,000 more. The next day, the Palo Alto, Calif., company increased that to 2.69 million shares, with an option for as many as 414,239 more.
Goldman Sachs Group Inc. is buying about 1.18 million shares and Morgan Stanley is acquiring almost 962,000, Tesla said in a filing Wednesday. The other underwriters are JPMorgan Chase & Co., Deutsche Bank AG, Bank of America Corp. and Wells Fargo & Co.
Chief Executive Officer Elon Musk is Tesla’s largest shareholder, with a 22 percent stake. Musk indicated preliminary interest in buying as many as 82,645 shares in the offering for a total of about $20 million, Tesla said in an Aug. 14 filing.
Tesla shares fell 2.1 percent to $255.25 at the close of Nasdaq trading Wednesday in New York. The shares have gained 15 percent this year as the Standard & Poor’s 500 Index rose 1 percent.