is taking advantage of strong demand for electric-vehicle stocks and plans to raise billions in a nonstandard stock sale. On Tuesday, the EV behemoth said it plans to raise up to $5 billion in an “at the market” stock offering being led by
The company plans to use cash to “further strengthen our balance sheet, as well as for general corporate purposes,” according to the prospectus. That is standard language. More specifically, Tesla (ticker: TSLA) might use the money to build additional manufacturing capacity. Its next plant is planned for Austin, Texas. Currently, Tesla has facilities in California, Nevada, and Shanghai, as well as one under construction in Berlin. The company wasn’t immediately available to comment on future capacity plans.
The offering is a little different than other stock sales. “At the market” means “investors who purchase shares in this offering