Tesla announces plans to sell up to five billion dollars of new stock shares
1 September 2020, 16:14
The company is building a new factory in Germany and has plans for an additional plant outside Austin, Texas.
Tesla has announced plans to sell up to five billion dollars worth of common shares, a day after its five-for-one stock split took effect.
The electric car and solar panel maker said in a filing with securities regulators that it intends to sell up to 10.03 million shares and use the proceeds for unspecified general corporate purposes.
The sales would be made “from time to time” and Tesla said the actual amount of the offering cannot be determined at present.
The stock would be sold through 10 different brokerage houses, and each would get a 0.5% commission.
Tesla shares rose 2.1% in pre-market trading on Tuesday after the filing with the US Securities and Exchange Commission.
It closed on Monday at 498.32 dollars.
As of June 30, Tesla had 8.6 billion dollars (£6.38 billion) in cash and roughly 8.5 billion dollars (£6.31 billion) in debt excluding vehicle and solar panel financing.
The company has to finance some big-ticket capital spending this year because it is building a new factory in Germany and has plans for an additional plant outside Austin, Texas.
It is also gearing up to roll out its new Cybertruck pickup and a semi some time next year.
Goldman Sachs, Bank of America, Barclays, Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, SG Americas, Wells Fargo and BNP Paribas are listed as the sales agents.
