Tesla announced that they were raising money - Offerings of Common Stock and Convertible Senior Notes. 1.15 billion Dollars in total. Musk himself will be buying 25 million Dollars of common stock, effectively ten percent of the offering (of common). This is not unexpected, we have continued to see suggestions that the company needs to raise money. As they say in what is a very short release: "Tesla intends to use the net proceeds from the offerings to strengthen its balance sheet and further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3, as well as for general corporate purposes."
1.15 billion Dollars, relative to the market cap of 43.33 billion Dollars, 2.65 percent dilution. It is perhaps less than the market expected. The stock is actually up around two percent after-market, then again I am not always sure what is happening in the background, with a large short interest (over one quarter of all the shares outstanding), and such divergent views on the successes of the business. We will maintain that Musk is a doer, and a dreamer and someone who has been able to execute all the way through from vision to current. Reusable and cheap rockets? Yeah baby. Charging stations and cheaper electric vehicles, with driverless technology? That is him my friends, he has been the guy that has been able to put this all together.