Tesla unveiled a billion-dollar capital increase on Tuesday, its second move in three months as the electric-car maker moves ahead in a meteor rally in its shares this year.
The additional shares will be sold at “from time to time” and “at-the-market” prices, Tesla said in filing with the Securities and Exchange Commission. Banks will sell shares based on Tesla’s instructions, the filing said.
Tesla’s market cap is currently 59 8,598 billion, which means the new offer represents less than 1% of the company’s value.
The new capital increase comes at a crucial time for Tesla, which is preparing to build new factories in Germany and Texas.
Wedbush analyst Dan Ives said in a note on Tuesday that the capital increase in the bull case for Tesla is “clearly positive and becomes stronger”.
“Now in a clear state of power and on the horizon (on Stein and Berlin) outside the main factory red ink, Musk and his red cap are raising enough capital to get the balance sheet and capital structure, out of his growing cash position and gradually his debt situation. Get out, which throws the delayed bear thesis for Tesla out of the existing window, ”he wrote.
Shares of the company, which touched a record high on Monday, fell more than 2% in previous trading. Shares of AutoTomeker are up about 670% this year. It includes a 5-for-1 stock split in -Gust.
Tesla entered into equity distribution agreements with banks, including Goldman Sachs and Citigroup Global Markets, to sell its common stock, with sales totaling up to 3 billion. According to its SEC filing, banks will be compensated by a commission of up to 0.25% of the total revenue from each sale of shares.
-Reuters contributed to this report.
.
