Blog Tesla Banks $5 Billion During Stock Surge

Tesla has raised a whopping $5 billion, taking advantage of its soaring stock price.

The company announced the stock sale on Tuesday, saying proceeds will be used “to further strengthen our balance sheet, as well as for general corporate purposes.”

According to an Securities and Exchange Commission filing:

On September 1, 2020, Tesla, Inc. (“Tesla”) entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, SG Americas Securities, LLC, Wells Fargo Securities, LLC and BNP Paribas Securities Corp., as sales agents (each, a “Sales Agent” and collectively, the “Sales Agents”), to sell shares of common stock, par value $0.001 per share, of Tesla (the “Common Stock”) having aggregate sales proceeds of up to $5.0 billion (the “Shares”), from time to time, through an “at-the-market” offering program (the “Offering”).

Tesla has experienced a surge in its stock price since announcing a 5-for-1 stock split on Aug. 11. Shares have climbed by 81.3%, including a 12.6% pop on Monday. Tesla’s market cap is now about $464 billion.

Tesla has also been showing some operational strength as of recent. The company posted in July its fourth straight quarter of profits and strong delivery numbers. The company is also ramping production in China and building new factories in the U.S. and Germany.

 

[NoBeard]

Isn't it more correct to say that they have filed a notice of an intention to sell up to $5B in stock? They have not yet sold any stock, and therefore have not "Banked" anything.

 

[GarethSeltzer]

Isn't it more correct to say that they have filed a notice of an intention to sell up to $5B in stock? They have not yet sold any stock, and therefore have not "Banked" anything.

Looks like a bought deal to me. Which means, it is kinda done.

 

[1775S]

General Corporate purposes...would have been way more impressed with Elon if he had chose to invest in making tesla employee owned. Instead of banking with the Saudis ect. What do yall think.

 

[Hankmancini]

Let's see.... Giga Berlin = $4.4 billion, Giga Texas = $5 billion. A billion her and a billion there and I can see how it is easy to go through money fast!

 

[Bet TSLA]

Isn't it more correct to say that they have filed a notice of an intention to sell up to $5B in stock? They have not yet sold any stock, and therefore have not "Banked" anything.

Absolutely. They may or may not sell any of these authorized new shares. Pretty sure they'll wait until the S&P 500 inclusion announcement before they allow any to be offered at any price.

 

[Wllllam]

General Corporate purposes...would have been way more impressed with Elon if he had chose to invest in making tesla employee owned. Instead of banking with the Saudis ect. What do yall think.

 

[Wllllam]

If Tesla was employee owned, there would be a lot of guys sailing on yachts in the Mediterranean and little reinvestment. Elon is doing great. Simplistic thinking is that he is rich at other people's expense. He does not consume $Billions, he effectively manages it for the benefit of those of us less gifted

 

[Ostrichsak]

If Tesla was employee owned, there would be a lot of guys sailing on yachts in the Mediterranean and little reinvestment. Elon is doing great. Simplistic thinking is that he is rich at other people's expense. He does not consume $Billions, he effectively manages it for the benefit of those of us less gifted

He's doing a bangup job with Tesla's "customer service" solution. At least if it was employee owned they would care enough to keep the gravy train going to at least offer serviceable customer service. Elon is on record stating that he fully expects Tesla to fail.. several times over now. It's really easy to have a star shine bright for a short period if there's no expectations of it actually lasting. It kind of feels like we're seeing that.