Tesla plans to raise up to $5 billion in share sale to capitalize on red-hot investor demand

• $4 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.
• $4.

$4 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 $4 said Tesla would sell the shares in an "at the market" offering, or ATM. ATMs allow a company to sell new shares directly into the market through a broker-dealer at current prices, but in any specified amount and over any period of time. Traditional capital raisings are usually done in one batch at a fixed price.

Goldman Sachs, BofA Securities, Barclays Capital, Citigroup Global Markets, Deutsche Bank Securities, Morgan Stanley, Credit Suisse Securities, SG Americas Securities, Wells Fargo Securities, and BNP Paribas Securities will be involved, the filing said.

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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. Tesla stock surged by as much as 12%, to $498 per share.

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Since August 11, when Tesla $4, its shares have added more than 70%, even though a split $4.

Despite Tesla's stunning rise to $4, it still is not part of the benchmark $4, 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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