By MICHELLE CHAPMAN, AP News.
Tesla is looking to raise up to $5 billion in capital through a stock offering as the electrical vehicle and solar panel maker seeks to take advantage of strong demand for its products.
This is the second such move for the company in three months. In September Tesla said that it planned to sell up to $5 billion worth of common shares just one day after its 5-for-1 stock split took effect.
Similar to its prior capital raise, Tesla Inc. said in a regulatory filing on Tuesday that the stock sales would be made “from time to time.” The stock will be sold through 10 different brokerage houses, and each will get up to a 0.25% commission.
Wedbush’s Daniel Ives said in a client note that the current move makes sense given the strong rally in the company’s shares and investors’ keen interest in the electric vehicle market.
Tesla’s stock has exploded this year, growing more than 600%. The shares closed up 7% on Monday at $641.76.
The Palo Alto, California-based company headed by Elon Musk has to finance some big-ticket capital spending this year because it’s building a new factory in Germany and has plans for an additional plant outside of Austin, Texas. It’s also gearing up to roll out its new “Cybertruck” pickup and a semi sometime next year.