| Title | Tesla Will Cash in on Surging Stock Price With $5 Billion Stock Sale | |
| Date | Wednesday September 02 2020, @09:36AM | |
| Author | martyb | |
| Topic | ||
| 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.
| Links |
printed from SoylentNews, Tesla Will Cash in on Surging Stock Price With $5 Billion Stock Sale on 2023-07-17 22:55:53