Tesla IPO Probably Generated $24M for CEO Musk
NEW YORK - Elon Musk, CEO of Tesla Motors Inc., made at least $24 million from the electric-car maker's initial public offering, restoring some of the wealth he's staked on the company and other startups, Bloomberg reported.
Tesla set a price of $17 a share and Musk sold 1.42 million shares, including an over-allotment to underwriters, according to filings and data compiled by Bloomberg.
Tesla shares earlier today rose as much as 27 percent to $30.42, but ended the day down 6 cents to close at $23.83. It posted a 41 percent gain during its first day of trading yesterday -- the second-biggest rally for a U.S. IPO this year.
Musk, 39, who made about $300 million selling PayPal Inc. and Zip2 Corp., said in February he had just $650,000 in “liquid assets” and got loans from friends to pay fees and support for estranged wife Justine Musk, according to a divorce- related filing. The value of his remaining 26.9 million Tesla shares was about $642 million, based on yesterday's close.
Tesla, the Palo Alto, Calif.-based maker of the $109,000 electric Roadster bought by Brad Pitt and George Clooney, is using proceeds from the IPO to begin production of the battery-powered Model S sedan and develop a range of rechargeable models. Along with celebrity customers, Tesla investors include Daimler AG. Toyota Motor Corp. said in May it will buy a $50 million stake.
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