But with Ellison's net worth estimated at $69.6 billion and Musk's net worth estimated at $39 billion, these token stock purchases will do little to bolster the faith of Tesla's now diluted common stockholders.
After more than doubling in 2020, Tesla's stock has settled back down to a still-huge year-to-date share price rise of almost 88%.
Co-founder and CEO Elon Musk will add to his Tesla stake by buying up to $10 million in shares from the offering, for which Goldman Sachs and Morgan Stanley will serve as the lead joint book-running managers, Tesla said in a news release.
Tesla officials have maintained for some time that they have no plans to raise any new funds, including through a new stock sale.More news: Yellow weather warning for the East of England as storm Dennis approaches
Tesla Inc made an about-turn on Thursday by announcing plans to raise $2bn in a stock offering as the electric auto maker taps into an astronomical jump in its share price in the past few months. Its profit and revenue in the last three months of 2019 topped estimates and the company said 2020 deliveries should comfortably beat projections amid demand from new customers.
RBC Capital Markets said: "Notably, this comes about two weeks after CEO Elon Musk stated on the 4Q19 earnings call that "it doesn't make sense to raise money because we expect to generate cash despite this growth level".
But there are a dozen steps he can take to reach that lofty goal, and each could get him an additional 1.7 million options.
Californian auto maker Tesla is going to restart production of the previously discontinued Long Range, rear wheel drive Model 3 - but this time, at its Shanghai Gigafactory 3 in China. The potential circa 2.65m shares is only around 1.5% dilutive to the share count. Tesla said it will use proceeds from the offering "to further strengthen its balance sheet, as well as for general corporate purposes". The company now has $6.3 billion in cash on its books.More news: Trump trolls Cuomo with 'Fredo' tweet ahead of White House meeting
If the average price of Tesla stock stays at Tuesday's closing price of $774.38 for the next several months, the stock could achieve that $100 billion average over a six-month period as soon as April 17.
Winklevoss took the opportunity to pump Bitcoin. While shares were down as much as 6% in the pre-market, the stock recovered its losses in early market trading.
This article was edited by Sam Bourgi.More news: COVID-19: World Health Organization official name for Coronavirus