Tesla to Sell $5 Billion of Additional Stock After Surge

Tesla  (TSLA) – Get Report on Tuesday revealed plans to sell up to $5 billion worth of its stock in an “at-the-market” offering program designed to take advantage of the electric car and battery maker’s recent stock price surge and split.

In a Securities and Exchange Commission filing, Tesla disclosed on Tuesday that it has entered into a so-called “equity distribution agreement” to sell the additional allotment of up to 10 million shares, or about 1.1% of its total shares outstanding.

Goldman Sachs, BofA Securities, Barclays Capital, Citigroup Global Markets, Deutsche Bank, Morgan Stanley, Credit Suisse, SG Americas, Wells Fargo and BNP Paribas are all involved in the stock offering, according to the filing.

The move comes amid a banner year for Tesla, which has seen its share price gain nearly 500% amid stronger-than-expected sales and a quicker-than-anticipated path toward profitability – something that seemed elusive at the beginning of the pandemic in March but which has since been proven wrong by record sales.

Shares of Tesla were up 3.28% at $514.68 in premarket trading on Tuesday.

Source Article