Tesla to raise $5bn via at-the-market share sales
Tesla Motors Inc
$410.44
13:10 03/01/25
Electric-vehicle giant Tesla has decided to tap capital markets for $5bn in funding via a share sale to capitalise on the recent sharp run up in the price of its stock.
Nasdaq 100
21,326.16
12:15 03/01/25
The sale will be conducted by a group of investment banks that includes Goldman Sachs, Barclays Capital, BofA Securities and Morgan Stanley, among others, via an "at-the-market" offering programme.
The latter means that the shares will be sold from time to time on the basis of Tesla's instructions, including as regards price, time or size limits specified by the automaker.
Just the day before, Tesla's shares had hit a fresh record high of $648.79, giving the vehicle manufacturer a market value well in excess of $600bn amid very string demand for so-called 'sustainable' investments.
It also came close on the heels of news of heightened competition to improve the technologies involved in EVs.
According to Bloomberg, on the same day that Tesla announced the share sale, QuantumScape Corp., a batter startup whose main shareholder is Volkswagen, published new data showing that its batteries could be charged twice as quickly as those in Tesla's Model 3 sedan.
The data also suggested that, with current commercial battery technology, QuantumScape's batteries might be able to offer 50% more miles.
As of 1236 GMT, stock in Tesla was dipping 1.22% to $634.