Tesla Motors CEO is buying $20 million worth of shares in Tesla

Tesla Motors CEO is buying $20 million worth of shares in Tesla

Tesla’s ongoing expansion led them to sell $500 million worth of shares, and CEO Elon Musk is buying $20 million worth himself.

It was announced last Thursday that Tesla motors is in need of additional funds. Therefore, they are offering to sell some stocks for their expansion. The decision doesn’t come as much of a surprise since they have been burning their funds at a very fast rate.

Upon the news, Musk reinforced his commitment to being a major stockholder of the company. While in Germany in 2013, Mr. Musk made it clear that he will be the last one who will sell stocks in the company and that promise has been kept. Only a handful of CEOs made such a promise, and it is really exceptional.

Musk owns 27% of Tesla’s shares; the company is worth $30 billion.This is not the first time that the CEO bought stocks in Tesla. About 2 years ago, he purchased shares worth $100 million to raise funds through common stocks.

So, what are the additional funds for?

The offering is to accelerate the growth of the company internationally as well as in the United States. This includes general corporate purposes, Tesla Giga factory development, Supercharger network, production of Model 3 and its development,   service centers, and growth of its stores.

Earlier this year, the company made arrangements with 5 banks to raise a $500 million credit line that can be extended to another $250 million. Tesla Company, Inc. is hoping for a positive cash flow from the sales of the Model X.

Although the news may be shocking, the company has proven for years that it is more than capable of handling any situation involving investors. They have proven that gross profits and sales have doubled; vehicles had a 40% increase in sales last year and now have further increased to 50%. 

WHAT'S NEW

MOST POPULAR

Johnson Wins One More Time At Dover

For the tenth time, Jimmy Johnson won on the Dover track. There are only a handful of Nascar drivers who were able to meet this milestone. Luckily, Johnson was one of them. Johnson started the race in the back. However, he was up-front in no time. He immediately took control of the race, and he did…

Women in Auto Car Racing

Here are a few facts about women who have been in auto car racing since a long time. • The very first all women auto car race was organized in 1909 in New York City. The race ended in Philadelphia. A total of 12 women racers took place in this ace. • The first women racer to race in the…

The Craze Among The Young Generations

Apart from all other sports this car racing sport had become popular too among the Nations. Anything that is daring and challenging are all time favorite for the younger generations. Car racing is a game that does not take place throughout the year. It takes place twice or hardly thrice in a year.…

Classic Car Racing Is Popular Among Motor Sport Enthusiasts

Many motor sports enthusiasts consider classic car racing as one of the favorite sports. After all, it is also one of the most popular events taking place across the entire United States. If you are interested, you can also do so, provided you have a full driving license and your own classic car.…

MOST RECENT

The Craze Among The Young Generations

Apart from all other sports this car racing sport had become popular too among the Nations. Anything that is daring and challenging are all time favorite for the younger generations. Car racing is a game that does not take place throughout the year. It takes place twice or hardly thrice in a year.…

Danika Patrick crashes at Ford EcoBoost 400

Danika Patrick walked out of Homestead-Miami Speedway an angry and disappointed person. This was not how she wanted her last NASCAR race as a full-time driver to end. The sadness and disappointment she felt about her exit from the race were obvious. Tragedy for Patrick Patrick’s race was over…

Changes to 2018 Season of the World Endurance Championship

Recently, the FIA revealed plans for the global endurance sports challenge with longer races than before. The plan for the new 2018 season is to include 8 races within 13 ½ months. This is aimed to start at the Circuit de Spa Franco Champions in May, 2018. This new shift is referred to as the…

NASCAR Legend, Darrell Waltrip

The National Association for Stock Car Auto Racing (NASCAR) is one of the biggest racing sports in the world, with its headquarters in Daytona Beach, Florida, USA. It has been a platform for many drivers to step up their game and be one of the best stock car racers in the world. It is a family-owned…

MOST READ

The Car Racing Journey

Car racing is also called as auto or motor racing. It’s a game of automotive in which vehicles compete with each other on a specific race track. The main goal is to cross the finishing line first among other competitors. The winners are determined on the basis of total race time, along with…

Grandview Racing Track

Considered as one of the best, Grandview Speedway is located in Washington Township in Berks County near Bechtelsville and Pennsylvania. It is also known as the greatest show on dirt. Unlike others, it is the one-third automobile race track. It features the high banks moderately and a quite wide…

What Are The Categories That Car Racing Involves?

Car racing has become popular and famous worldwide. People from various parts of the world come to join events that involves car racing. These sports have great fan followers. The young generations get motivated. The daring attitude and the challenging act stimulate the nerves of the audiences and…

Single Seat Car Racing

Car racing is something that excites everyone who loves speed. Car racing are of many types. It can be single seat car racing or even formula one racing. Whatever the case may be one need to learn racing properly before they start with it. There are a whole lot of techniques that are followed by…

MOST COMMENTED

About Saloon Car Racing

Car racing is something that excites everyone who loves speed. The thrill in this sport is tremendous and this thrill is the best part of this sport. Saloon car racing first got started in Australia. It is equally and now-a-days more popular than the single seat car racing. Various championship…

NASCAR’s most surprising driver - Dale Earnhardt Jr. tops list

This weekend at Pocono Raceway denotes the first commemoration of the Fanatics Trackside Superstore. It is an enhanced and reimagined at-track shopping experience. The Trackside Superstore gives fans a one-stop-shop each race weekend with the greatest choice of in-store NASCAR merchandise in the…

Don Prudhomme’s Shelby Super Snake

It was almost 50 years ago when Don Prudhomme raced the famous Shelby Super Snake Top Fuel dragster. The beauty was sent by Don to get a full restoration three years ago. Today, it is back and ready for action. Plans? Don says he will “at least do a burnout” this fall at the NHRA Hot Rod…

Bristol Cup Race - April 17 - lead drivers

The season of car racing has started. We have had the chance to enjoy more than a few amazing races, and there are many more to come in the next months. The Bristol Cup Race is one of the most popular events of this kind and the drivers give everything they have to get their hands on the prize. Carl…