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Krasimir Balakov
Dec 08, 2020 2:10PM ET
biggest scam in stocks
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Tesla launches second $5 billion share sale in three months
Published Dec 08, 2020 06:23AM ET
Updated Dec 08, 2020 08:40AM ET
© Reuters. FILE PHOTO: A Tesla sign is seen on the Shanghai Gigafactory of the U.S. electric car maker
(Reuters) -Tesla Inc unveiled a $5 billion capital raise on Tuesday, its second such move in three months as the electric-car maker cashes in on a stellar rise in its shares this year.
The company's shares touched a record high on Monday, pushing Tesla (NASDAQ:TSLA)'s market value above $600 billion and further cementing its position as the most valuable auto company in the world despite production that is a fraction of rivals such as Toyota Motor (NYSE:TM), Volkswagen (DE:VOWG_p) and General Motors (NYSE:GM).
Ten major banks, including Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) Global Markets and Morgan Stanley (NYSE:MS), will conduct the sale, the carmaker said in a filing, giving no timeline for its completion. (https://
Demand for Tesla's shares has been further fueled by the decision last month to add the company to the S&P 500 index, making it one of the most valuable firms ever to join the main U.S. stock market benchmark.
Some investors and Wall Street analysts believe Tesla's stock is in a bubble, and a few have warned against adding it to the S&P 500 at current levels. Analysts' median price target on the stock stands at $400, $230 short of the current price.
The 670% rally in Tesla's shares this year has also boosted Chief Executive Officer Elon Musk's net worth from $27 billion to $155 billion, making him the world's second-richest person, according to the Bloomberg Billionaires Index.
In September, Tesla said it would raise $5 billion to ease its future debt pressures as the company seeks to massively expand production of its existing vehicles and build new factories near Berlin, Germany and Austin, Texas.
The company also has plans to launch new lines of vehicles, including a semi-truck called the Tesla Semi and its futuristic Cybertruck.
The company's shares fell 1.3% to $633.73 in premarket trading.
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Comments (15)
Reonard Rico
Dec 08, 2020 12:06PM ET
i heard burry already short tesla.. its biggest bet in 2020
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Mathieu Cool
Dec 08, 2020 9:24AM ET
hmm yea seems elon is taking advantage of the crazy valuation.... suggesting the price is too high...
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DMFINANCE
Dec 08, 2020 9:13AM ET
Loot while one can by the time people realize the stock will be in single digits
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Paolo Sarvia
Dec 08, 2020 9:07AM ET
Watch the Tesla quality ratings from customers, take a look at the BEV 2021 scheduled models from VOW3, inform you about Model3 sales in Norway after the launch of ID3 and make your own decision.
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Guy Follong
Dec 08, 2020 9:07AM ET
when Berlin is at work, Tesla wil have the same Quality as the 3 grands Audi, BMW, Merc.
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Beer Time
Dec 08, 2020 9:06AM ET
Tesla the new bitcoin
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Jeffrey Whittinghill
Dec 08, 2020 9:04AM ET
Just buy more and ignore the dilution... puppets
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Benjamin USA
Dec 08, 2020 9:04AM ET
pUpPeTs
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Shahzad Hamayon
Dec 08, 2020 8:52AM ET
I am new to investing, is it the right moment to buy tesla stocks ?
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Quang Tien Phan
Dec 08, 2020 8:52AM ET
Wait until 15-20 Dec when people sell their shares to get some money to buy stuffs for christmas and new year event, price could be cheaper a bit than now
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Yelen Shim
Dec 08, 2020 8:52AM ET
No. This is the worst time to buy Tesla. wait
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Jesse Mulliniks
Dec 08, 2020 8:43AM ET
I feel so bad for the gullible tesla fan boys who will get burnt by Enron Musk
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Yelen Shim
Dec 08, 2020 8:43AM ET
They're running all the way to the bank .. hello
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Dietmar Stahl
Dec 08, 2020 8:36AM ET
Tesla only has 28B revenue vs Volkswagen 260B or At&t 160B
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