Tesla is using over $13 million worth of stock to get trucks and trailers that will transport its electrical vehicles to customers, the most recent effort by the automaker to increase its delivery and logistics services.
Rather than using cash, Tesla issued $13.8 million in stock, a new securities filing posted Monday shows. Tesla used 49,967 shares at a maximum cost of $277.05 a share as of February 12 to purchase the trailers from Central Valley Auto Transport.
The California-based firm specializes in car carriers. Tesla’s statement within the securities filing:
As part of Tesla’s continuing logistics strategy to improve its vehicle transport capacity, decrease vehicle transportation time, and improve the timeliness of scheduled deliveries, Tesla agreed to issue shares of Tesla’s common stock in connection with its acquisition of particular car-hauling trucks and trailers from Central Valley Auto Transport, Inc. (“Central Valley” or the “selling stockholder”-RRB-, an automotive transport provider. We’re registering these Tesla shares pursuant to registration rights granted to the selling stockholder in connection with the acquisition.
In November, Tesla CEO Elon Musk tweeted that the electrical automaker had “obtained trucking capacity,” a move aimed to improve deliveries of its Model 3 vehicles until the federal tax credit started to wind down December 31. Musk nor the firm revealed more information. The company never submitted any regulatory filings of an acquisition.
Musk later tweeted that Tesla had purchased trucking firms and secured contracts with major haulers to ldquo;avoid trucking shortage mistakes of past quarter. ”
It’s not clear if this newest purchase from Central Valley Auto Transport reflects actions that Tesla took last year or if this is additional capability. Tesla did notice in its fourth-quarter shareholder letter that it is “continuing to buy our own car-hauling truck capacity for vehicle shipments. ”
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