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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.
(Score: 0) by Anonymous Coward on Wednesday September 02 2020, @06:00PM
That's a split, like happened in February. This is sale of NEW stock, so you go from 1 of 100 to 1 of 200, or from 1% to 0.5%.