Tesla issues more shares to fund ‘Model X’ crossover

UPDATED: 6/6/2011ELECTRIC vehicle manufacturer Tesla has announced plans to make a public offering of 5.3 million shares to help fund the development of the ‘Model X’ crossover vehicle.

Tesla hopes the offering – which also includes a separate private placement that will allow Tesla founder and CEO Elon Musk to buy 1.42 million additional shares and Daimler AG affiliate Blackstar Investco to purchase up to 637,475 shares – will raise an estimated $US234 million ($A218 million).

The company had said it was granting up to 795,000 shares of common stock to its underwriter at $US26 per share. However, the stock’s final price was higher than expected, closing at $28.76.

The company also revised its allocation of shares to Mr Musk and Blackstar Investco, down from 1.5 million and 644,475 respectively.

The Model X will be a significant departure from the company’s previous efforts – the Lotus-based Roadster and the Model S sports sedan – according to its filing to the US Securities and Exchange Commission (SEC).

“We are designing the Model X to incorporate the functionality of a minivan with the consumer appeal of a sports utility vehicle,” it said.

Little else is known about the model X at this stage, although Tesla hopes to have a prototype by the end of 2011 and to have it on sale by the end of 2013.

The Silicon Valley-based company also revealed in the SEC submission that it will cease production of its pioneering Roadster – which went on sale here earlier this year - in December.

It will rely on existing stock to fly the company flag though the first half of 2012, by which time the company hopes to have commenced customer deliveries of the Model S.

Australian deliveries of the sleek four-door coupe will begin in early-2013, and while pricing is not yet confirmed, Tesla Australia national marketing manager Jay McCormack previously told GoAuto that it would likely cost between $120,000 and $130,000.

Tesla launched a public share float in July last year – the first from a car-maker in more than 50 years – raising $US226 million ($A212 million).