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Tesla plans to raise $2 billion in a new stock offering, the company said Thursday.
Tesla watchers quickly pointed out that Tesla Chief Executive Elon Musk recently said that that the company did not have plans to raise more capital.
“Diluting the company to pay down debt doesn’t sound like a wise move,” Musk said on the company’s Q4 earnings call.
But, it seems the recent strong performance of Tesla’s stock created an opportunity to raise money at a good price as the company embarks on several capital intensive initiatives.
Tesla’s current efforts include rollout of the Model Y SUV, ramp-up of production at Giga Shanghai, and construction of the company’s first factory in Europe. Tesla also intends to bring to market in the next two years a semi truck, the jaw-dropping Cybertruck, and an updated Roadster intended to deliver a “smackdown” to all other cars.
Tesla said in the SEC filing that it would offer 2.65 million shares, of which Musk will buy up to $10 million in shares, and board member and Oracle co-founder Larry Ellison will purchase up to $1 million worth of shares.