Tesla launches second $ 5 billion new share sale in three months

Tesla launches second $ 5 billion new share sale in three months

Tesla today announced its intention to raise additional capital by selling $ 5 billion in new shares. This is Tesla’s second such move in the past three months.

Tesla shares hit a record high yesterday, pushing the company’s market value to over $ 600 billion, cementing it as the world’s most valuable automaker. Note that in terms of production, it is many times inferior to Toyota Motor, Volkswagen, General Motors and other competitors.

Ten major banks, including Goldman Sachs, Citigroup Global Markets and Morgan Stanley, will be selling new shares. The automaker does not name the date of completion of the sale.

Tesla factory in China

Demand for Tesla shares was further boosted by the decision made last month to add the company to the S&P 500, making it one of the most valuable companies ever listed on a major US stock market indicator.

Some investors and analysts view the current situation as a bubble. The average target price for Tesla shares, as generated by analysts, is $ 400, down $ 230 from the current price. Tesla’s 670% rise this year has already boosted CEO Elon Musk’s net worth from $ 27 billion to $ 155 billion, making him the second richest in the world according to Bloomberg rankings.

Tesla launches second $ 5 billion new share sale in three months

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