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Tesla Motors Sells 3.1 Million Shares Raising an Estimated $738.3 Million, But Faces PR Issues

On the 13th of August, Tesla Motors announced plans for selling 2.1 million shares, with an underwriter option to buy as many as 315,000 more. The following day, 590,000 shares were added with an option for as many as 414,239 more. That adds up to a grand total of roughly 3.1 million shares each costing $242.
Tesla Model S at a Supercharger 1 photo
Among those buying the newly released Tesla Motors shares are well-known names like Goldman Sachs Group Inc. They cashed in for about 1.18 million of them, while Morgan Stanley went for a slightly lower number of 962,000. Other underwriters include JPMorgan Chase & Co., Deutsche Bank AG, Bank of America Corp. and Wells Fargo & Co.

Even after this sale, company CEO Elon Musk is still Tesla Motors' main shareholder with a 22 percent stake. He also announced his interest in acquiring an 82,645 shares package worth about $20 million.

At the closing of Nasdaq on Wednesday, Tesla shares fell 2.1 percent to $255.25, but remained on an overall high this year, rising 15 percent.

Tesla Motors is gathering liquid capital as it prepares the launch of the new Model X electric SUV as well as expanding its network and building a large battery factory near Reno, Nevada.

On the other hand, Tesla Motors is facing a bit of bad press because of a letter which was presumably sent to a series of Model S owners. The letter was trying to suggest said owners to lay off the Superchargers and use their home chargers more often instead. You can read the whole letter at the bottom of this page, but this sentence pretty much sums it up: "As a frequent user of local Superchargers, we ask that you decrease your local Supercharging and promptly move your Model S once charging is complete."

That's not exactly the kind of text you want to read coming from a company you just gave around $100,000. For the moment, Tesla Motors did not make any comment about the letter which is said to have reached a large number of Model S owner. Some of them complained the closest Superchargers were nearly 100 miles away from where they lived and had only used them on a handful of occasions.

As soon as an official statement will be made, we'll be here to update you.

These are the contents of the infamous letter, as reported by several websites:

Dear XX,

One of the great benefits of owning Model S is the many ways to easily charge. Between home charging, Destination Charging, and Supercharging, there is a solution for any application and adventure.

In particular, the Supercharger Network is the fastest, largest and quickest growing charging network on the planet. The Supercharger Network has grown tremendously to meet the needs of our owners and so far more than 150 Stations have opened globally in 2015.

However, as fast and prevalent as Superchargers are they will never be as convenient as charging at home. The true convenience value of EV ownership is unlocked when owners enjoy the ease of charging at home each night and Supercharging only when needed. Simply plug in when you arrive home and Model S will charge right away or at the time you've scheduled using the Touchscreen or Mobile App. Long before morning, your car will be fully charged for the next day. There is no extra travel time and no waiting.

The Supercharger Network's intent remains to expand and enhance your long distance travel while providing the flexibility for occasional needed use during local trips. Our goal is to provide the best charging experience, keeping charge times low to get you back on the road as quickly as possible. As a frequent user of local Superchargers, we ask that you decrease your local Supercharging and promptly move your Model S once charging is complete. Doing so ensures a better experience for the whole Tesla ownership community and allows Supercharger resources to be available for those who need them most.

Our helpful charge time and cost calculator shows just how little it costs to fill up at home. Using the national average cost per kWh of $0.12 and a 40 mile daily commute, topping up at home is under $2.00. In addition, many utilities offer incentives for off-peak charging, allowing you to realize additional savings of up to 50% depending on your local utility provider.


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