Tesla Issues Recall for Model X Steering Issue

Tesla Recalls Thousands of Vehicles Over Power Steering Issue

"This is about a company proving to people that they're going to accomplish their long-term goals, and the market likes it", Gerber said.

In the filing, Tesla noted that CEO Elon Musk has indicated an interest in purchasing up to 13,032 shares valued at approximately $10 million and Tesla board member and Oracle CEO Larry Ellison indicated interest in acquiring 1,303 shares valued at approximately $1 million.

Tesla shifted gears Thursday and said it would issue new shares to raise fresh cash, as the electric carmaker responded to the coronavirus epidemic impact on its Shanghai factory and the China auto market.

The decision to raise additional capital was surprising given Musk was adamantly opposed to it on Tesla's fourth-quarter earnings call on January 29.

A source familiar with the matter told Benzinga Tesla will offer 2.65 million shares of stock, and the offering is expected to price after Thursday's close.

Several analysts and experts have weighed in on the offering on Thursday.

"We believe it's a smart move".


Now, it would appear the Long Range RWD Model 3 is back, but this time in China according to Tesla China spotter Jay in Shanghai, who shared documentation from the Chinese ministry of industry and information technology. During the company's most recent earnings call, at least one person asked Musk about the possibility and he brushed it aside, saying it "doesn't make sense", he said. Others are capitalizing on the opportunity to throw jabs at the company.

Elon Musk's big payday may be closer than you think. I need the money.

The rear wheel drive (RWD) Long Range Model 3 was one of the original configurations available when Tesla first introduced the ground-breaking electric auto in the U.S. for order in 2016.

"So in light of that, it doesn't make sense to raise money because we expect to generate cash despite this growth level", he said.

CFRA has a Sell rating and $440 price target for Tesla. "Diluting the company to pay down debt doesn't sound like a wise move".

Yet Tesla only has a sliver of the sales of the more established automakers whose stock value it now dwarfs, such as Volkswagen, General Motors and Ford. By selling shares at high prices, companies like Tesla are able to raise the maximum amount of cash for the minimum amount of shareholder dilution. While shares were down as much as 6% in the pre-market, the stock recovered its losses in early market trading.

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