Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Tesla launches second $5 billion share sale in three months

Stock MarketsDec 08, 2020 08:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© 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.

Tesla launches second $5 billion share sale in three months
 

Related Articles

Arrival EV Stock: Getting Closer to Revenue
Arrival EV Stock: Getting Closer to Revenue By TipRanks - Sep 19, 2021

There have been some interesting companies that have listed in 2021 through a SPAC business combination. Further, there has been no dearth of companies that have listed in the...

COVID-19 Tests a Boon for Quest Diagnostics
COVID-19 Tests a Boon for Quest Diagnostics By TipRanks - Sep 19, 2021

Shares of Quest Diagnostics Inc (DGX) were trading at around $154.77 apiece at close on Friday, September 17, outperforming the Health Care Select Sector SPDR (XLV) $132.35, by...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (15)
Krasimir Balakov
Krasimir Balakov Dec 08, 2020 2:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
biggest scam in stocks
Reonard Rico
Reonard Rico Dec 08, 2020 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i heard burry already short tesla.. its biggest bet in 2020
Mathieu Cool
Mathieu Cool Dec 08, 2020 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hmm yea seems elon is taking advantage of the crazy valuation.... suggesting the price is too high...
Dee Mehta
DMFINANCE Dec 08, 2020 9:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Loot while one can by the time people realize the stock will be in single digits
Paolo Sarvia
Paolo Sarvia Dec 08, 2020 9:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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.
Guy Follong
Guy Follong Dec 08, 2020 9:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when Berlin is at work, Tesla wil have the same Quality as the 3 grands Audi, BMW, Merc.
Beer Time
Beer Time Dec 08, 2020 9:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla the new bitcoin
Jeffrey Whittinghill
Jeffrey Whittinghill Dec 08, 2020 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just buy more and ignore the dilution... puppets
Benjamin McIntire
Benjamin McIntire Dec 08, 2020 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pUpPeTs
Shahzad Hamayon
Shahzad Hamayon Dec 08, 2020 8:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am new to investing, is it the right moment to buy tesla stocks ?
Quang Tien Phan
Quang Tien Phan Dec 08, 2020 8:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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
Yelen Shim
Yelen Shim Dec 08, 2020 8:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No. This is the worst time to buy Tesla. wait
Jesse Mulliniks
Jesse Mulliniks Dec 08, 2020 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I feel so bad for the gullible tesla fan boys who will get burnt by Enron Musk
Yelen Shim
Yelen Shim Dec 08, 2020 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They're running all the way to the bank .. hello
Dietmar Stahl
Dietmar Stahl Dec 08, 2020 8:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla only has 28B revenue vs Volkswagen 260B or At&t 160B
Denis Kruv
Denis Kruv Dec 08, 2020 6:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They already start buying shares - nobodt want to wait untill 18.12
Gabriel Andrew
Gabriel Andrew Dec 08, 2020 6:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
smart move...now tesla will become more cash flow positive which is great for future growth
James Theme
James Theme Dec 08, 2020 6:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank god finally turning these valuations into real money
Michael Rivera
Michael Rivera Dec 08, 2020 6:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why???
Ross Dre
Ross Dre Dec 08, 2020 6:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Must be unsettling to investors at these frothy valuations!
ש ע
ש ע Dec 08, 2020 6:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
depends on the price per share they'll get, but yeah, scary
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email