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Company News

BUZZ-Tesla extends slide after stock offering, recalling 15,000 Model X SUVs

(Updates to add stock offering, price action)

** Shares of the carmaker fall further 4.2% to $735 premarket, after dropping 3% earlier in the day, on co announcing stock offering, recalling 15,000 Model X SUVs

** Tesla plans to raise $2 bln from a public offering; CEO Elon Musk to purchase up to $10 mln of common stock in this offering

** Board member and Oracle co-founder Larry Ellison to buy $1 mln worth of Tesla shares

** Goldman Sachs & Co and Morgan Stanley acting as lead joint book-runners for offering

** Shares of the EV maker have surged nearly 250% since September; Up 83% in 2020, so far

** Tesla recalls Model X SUVs because of a potential issue that can lead to a loss of power steering assist that could make steering harder and increase the risk of a crash

** Recall applies to 2016 model year X vehicles built before mid-October and covers 14,193 U.S. vehicles and 843 in Canada

** TSLA has faced severe volatility over the past few weeks, thanks to the coronavirus epidemic which disrupted operations in China (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru)

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