Tesla has raised a whopping $5 billion, taking advantage of its soaring stock price.
The company announced the stock sale on Tuesday, saying proceeds will be used “to further strengthen our balance sheet, as well as for general corporate purposes.”
According to an Securities and Exchange Commission filing:
On September 1, 2020, Tesla, Inc. (“Tesla”) entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, SG Americas Securities, LLC, Wells Fargo Securities, LLC and BNP Paribas Securities Corp., as sales agents (each, a “Sales Agent” and collectively, the “Sales Agents”), to sell shares of common stock, par value $0.001 per share, of Tesla (the “Common Stock”) having aggregate sales proceeds of up to $5.0 billion (the “Shares”), from time to time, through an “at-the-market” offering program (the “Offering”).
Tesla has experienced a surge in its stock price since announcing a 5-for-1 stock split on Aug. 11. Shares have climbed by 81.3%, including a 12.6% pop on Monday. Tesla’s market cap is now about $464 billion.
Tesla has also been showing some operational strength as of recent. The company posted in July its fourth straight quarter of profits and strong delivery numbers. The company is also ramping production in China and building new factories in the U.S. and Germany.