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Tesla Will Cash in on Surging Stock Price With $5 Billion Stock Sale

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

upstart writes in with an IRC submission:

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.

Original Submission

 
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  • (Score: 0) by Anonymous Coward on Wednesday September 02 2020, @10:44PM

    by Anonymous Coward on Wednesday September 02 2020, @10:44PM (#1045628)

    The first sign that the big automotive companies are serious about competing with Tesla will be regulations that mandate any charging station must be capable of charging any electric vehicle and vehicles must be chargeable at any station. The laws will be written generically but will be designed to kill Tesla's exclusivity at their super-charger stations.