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Tesla To Sell $2 Billion In Stock; 12,000 Model 3 Orders Cancelled
Electric automaker Tesla ( TSLA ) said late Wednesday that it will make a $2 billion secondary stock offering to fund its ambitious production schedule. Meanwhile, Tesla also said it has 373,000 Model 3 orders after cancelling about 12,000 reservations. “Because of the overwhelming demand that it has received for Model 3, Tesla intends to use the net proceeds from this offering to accelerate the ramp of Model 3,” said Tesla’s press release. “As noted in the company’s first-quarter shareholder letter , Tesla intends to start volume production and deliveries of Model 3 in late 2017 and to accelerate its 500,000 unit build plan from 2020 to 2018.” The company said $1.4 billion worth of stock will be sold by Tesla for this purpose. The remaining $600 million will be raised by CEO Elon Musk, who is exercising his option to acquire 5.5 million Tesla shares and will use the sale to cover his tax bill, the company said. He’s also donating 1.2 million shares to charity. Tesla said it had some 373,000 orders for the entry-level luxury Model 3 as of May 15. That’s after customers cancelled about 8,000 orders and the automaker cut some 4,200 orders that were likely duplicates. Tesla had said previously that it had about 400,000 orders. “If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort, but believe it is better to guide customers to purchase products currently in production,” Tesla said in an SEC filing. Tesla stock fell sharply in initial after-hours action, dropping below 200. But shares steadily improved and were recently fractionally higher. In the regular session in the stock market today , Tesla rose 3.2% to close at 211.17, boosted by Goldman Sachs’ upgrade earlier in the day. Goldman upgraded the stock despite expressing deep skepticism about the 2018 production target, but the investment bank said the stock is attractively priced after falling 23% from early April through Tuesday.
4 Stocks Trading Near Or In Buy Range Before Earnings
Loading the player… Alphabet ( GOOGL ), Microsoft ( MSFT ) and Starbucks ( SBUX ) were all near buy points ahead of their most recent quarterly reports, but have since dropped from those levels after issuing weak results. On the other hand, Facebook ( FB ) and Amazon ( AMZN ) had formed bases and were propelled higher by their strong earnings. Here’s a look at four stocks that are trading near or in buy range ahead of their quarterly reports later this week: Applied Materials ( AMAT ), Autodesk ( ADSK ), Eight By Eight ( EGHT ) and Campbell Soup ( CPB ). Campbell Soup You may not think of Campbell Soup when you think of top stocks, but the maker of packaged food has a high IBD Composite Rating of 92 out of 99. The company is expected to report Friday an earnings increase of 3%, a big slowdown from two quarters in a row of roughly 30% bottom-line growth. Revenue is expected to fall a fraction. Campbell breached support at the 50-day line Wednesday in above-average volume but was able to finish the session just above the line. Shares are now about 5% below their all-time high reached as the stock cleared a flat base buy point of 65.58. The stock is trading 3% below that pivot. Eight By Eight Eight By Eight is a telecom services firm with an 85 Composite Rating. Earnings are expected to drop 60% while revenue climbs 25% when it reports Thursday. Shares tried to break out of a cup-with-handle base with a 12.05 buy point Wednesday, but closed the session below that level. The stock is 13% below its January peak. Applied Materials Applied Materials is expected to see earnings grow 10% on a fractional sales decline. The chip equipment maker, which reports Thursday, has a Composite Rating of 66. Shares are trading in buy range from a cup base the stock initially cleared in March. The stock ran up as much as 11% in the following weeks, but has since pulled back about 8% from its high reached one month ago. Autodesk And computer software firm Autodesk is expected to swing to a loss of 14 cents a share on a 21% decline in revenue when it reports Thursday. The company has a 49 Composite Rating. Shares recently breached support at the 50-day line and are dipping back below buy range from a cup-with-handle base. The stock is now about 12% below its December peak.