Tesla plans to raise up to $5 billion in share sale to capitalize on red-hot investor demand
- Tesla is planning to sell up to $5 billion in new shares right after its stock split, a Tuesday filing said.
- Tesla's 5-for-1 stock split went into effect on Monday.
- A $5 billion share sale would represent roughly 1% of the tech titan's market value.
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Tesla plans to sell up to $5 billion in new shares as investor demand for the electric-vehicle maker's stock shows no signs of abating.
A Securities and Exchange Commission filing on Tuesday said
Tesla shares, which have rallied almost 500% so far this year to record highs, are among the best performers on Wall Street. A $5 billion share sale would represent only about 1% of Tesla's market cap, which as of Monday's close was $498 billion.The company's 5-for-1 stock split, aimed at making its shares more affordable for smaller investors, came into effect on Monday.
Read more: US Investing Championship hopeful Matthew Caruso landed a 382% return in the first half of 2020. He shares the unique twist he's putting on a classic trading strategy — and 3 stocks he's holding right now.Since August 11, when Tesla said it would enact the stock split, its shares have added more than 70%, even though a split changes nothing about a company's underlying fundamentals. Despite Tesla's stunning rise to become the ninth-largest publicly traded company based in the US, it still is not part of the benchmark S&P 500, but this looks likely to change. After reporting its fourth straight quarter of profitability in July, the electric-car maker became eligible to be included in the index.
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