Tesla to raise $5bn in share sale

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Sharecast News | 01 Sep, 2020

22:29 31/10/24

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Tesla said it planned to raise up to $5bn (£3.7bn) in a share-sale programme a day after a stock split that has helped propel the electric car's company's shares to new heights.

The company said it would sell the shares through top brokers such as Goldman Sachs, Morgan Stanley and Citigroup "from time to time through an 'at the market' offering".

Tesla, headed by Chief Executive Elon Musk, implemented a five-for-one stock split on Monday to broaden its investor base. The company's shares have jumped by more than 70% since the split was announced on 11 August.

Analysts at Bank of America, another agent for the share sale, said in mid-August that investors were effectively giving Musk a blank cheque to expand Tesla's manufacturing operations with a higher share price. Tesla shares rose from $430 to more than $2,200 in the year before the stock split, valuing the company at about $93bn.

Tesla shares fell 0.7% to $498.32 in premarket trading in New York.

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