Elon Musk tries to raise $ 5 billion by selling Tesla shares

The company announced that it would sell shares “from time to time” and is currently required to finance the construction of its plant in Germany.

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Elon Musk tries to raise $ 5 billion by selling Tesla shares
Elon Musk tries to raise $ 5 billion by selling Tesla shares

To take advantage of the strong demand for electric cars, Elon Musk seeks to elevate through Tesla $ 5 billion in capital make an offer of shares.

It is the second time in three months that the tycoon has offered shares in the company’s electric vehicles and solar panels for sale. In September, Tesla announced that it would sell up to $ 5 billion in common shares just one day after the 5: 1 stock split went into effect.

In a regulatory document, Tesla Inc. said Tuesday that The sale of shares would take place “from time to time”. These are sold in ten different brokers and each receives a commission of up to 0.25%.

According to Daniel Ives of investment and financial services company Wedbush, the current move makes sense. In a communication to customers, he stated that This is in line with the rise in the company’s shares and investor interest in the electric car market.

That year, Tesla stock rose more than 600% in value. Tuesday closed at $ 649.88, an 8% increase.

The Palo Alto, California-based company needs funding the new plant you are building in Germany, In addition to the one he plans to drive in Austin, Texas. It is also preparing to launch its new truck and tow truck next year.

The company posted net income of $ 331 million for July through September, the fifth consecutive quarter of profitability. To meet government pollution and fuel consumption regulations, Tesla sold electric car loans to other manufacturers for a profit of $ 397 million.

As soon as Tesla reports its fourth quarter results in early 2021, it could be known whether the company will register Your first full year of earnings.

See Also: Elon Musk and Jeff Bezos’ Space Projects May Exempt Taxes To Attract Investors

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