Tesla Motors plans share sales at public offering to raise $214 million

DETROIT ― Electric car maker Tesla Motors Inc. plans to raise up to $214 million through a secondary public offering of its shares and a private placement.

Tesla shares rose 5.8 percent to $28.27 in midday trading on Nasdaq.

In a regulatory filing on Wednesday, Tesla said it planned to raise up to $158.5 million through a public offering of 6.095 million of its common shares, including 795,000 shares granted to the underwriter in a 30-day option, at $26 a share.

In the private placement at the same price, Tesla said it would sell 1.5 million shares to Chief Executive Elon Musk and 644,475 shares to Blackstar Investco LLC, an affiliate of Daimler AG.

At the offer price, the private placement would raise $55.8 million.

Tesla said it plans to use some of the proceeds of the offering and the private placement to fund the development of its Model X crossover vehicle.

Goldman Sachs is acting as sole book-running manager for the public offering.