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posted by martyb on Wednesday September 02 2020, @09:36AM   Printer-friendly
from the fear-of-missing-out? dept.

Tesla will cash in on surging stock price with $5 billion stock sale:

Tesla will sell up to $5 billion in new shares, the company announced in a Tuesday filing with the Securities and Exchange Commission. The company didn't give any specific timeline for completing the stock sale.

The announcement comes one day after Tesla completed a five-for-one stock split that sent Tesla's stock soaring. When Tesla announced the split on August 11, Tesla's stock was worth less than $1,400. Investors reacted enthusiastically, pushing the stock up 60 percent to over $2,200 over the following three weeks.

Since the split took effect on Monday, the stock has surged even higher and is now worth $480—$2,400 in pre-split terms.

The stock's high price means that Tesla can raise a lot of cash by issuing a comparatively small number of shares. Tesla announced its last fundraising round of $2 billion in February when the stock was worth less than $800—$160 in post-split terms. With the stock now at roughly triple that value, Tesla will likely be able to raise $5 billion while giving up a smaller share of the company to new shareholders.


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  • (Score: 0) by Anonymous Coward on Thursday September 03 2020, @06:45AM (1 child)

    by Anonymous Coward on Thursday September 03 2020, @06:45AM (#1045756)

    When I said, it's weird nobody else is doing what he is doing, I was mostly speaking to his neuralink venture. Unrelated technically; but, as far as I know, nobody has been pushing the envelope in that area.

  • (Score: 2) by ledow on Monday September 07 2020, @09:40AM

    by ledow (5567) on Monday September 07 2020, @09:40AM (#1047503) Homepage

    "By August 2020, only three of the eight founding scientists remained at the company, according to an article by Stat News which reported that Neuralink had seen "years of internal conflict in which rushed timelines have clashed with the slow and incremental pace of science."