Tesla Tesla on Tuesday revealed plans to take advantage of its meteoric stock rise by raising up to $5 billion through a program to sell...
Tesla on Tuesday revealed plans to take advantage of its meteoric stock rise by raising up to $5 billion through a program to sell more shares of the popular electric vehicle company.
Wall Street’s main brokerages, including Goldman Sachs, Bank of America and Morgan Stanley, will serve as sales agents for the stock selling program, which represents less than 1 per cent of Tesla’s $464 billion market capitalization.
Tesla shares briefly shot up as much as 3 per cent on the news in pre-market trading, before settling down to open the day up 0.6 per cent.
ALSO READ: Apple, Tesla shares rise further after stock splits
“We believe this is the smart move at the right time for Musk & Co.,” Wedbush analyst Dan Ives said in a research note, lauding investors’ strong appetite “to play the transformational EV trend through pure-play Tesla over the coming years.”
Tesla’s announcement arrives a day after the company’s 5-for-1 stock split took effect, bringing the price of a share of the electric automaker down to just under $500 from its previous price of $2,500.
Tesla shares have skyrocketed more than 70 per cent since it announced its plans for a stock split earlier this month.
NY Post
The post Tesla to sell $5 billion worth of stock as shares continue to rally appeared first on Vanguard News.
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