Tesla is planning to sell up to $5 billion in new shares of common stock, its second such move in the last three months. In a filing with the Securities and Exchange Commission, the company said it would sell the shares “from time to time” and “at-the-market” prices.
Tesla’s stock was up nearly 670% this year through Monday’s close, and the company’s market value surpassed $600 billion for the first time.
The company’s stock will be added to the S&P 500 for the first time on December 21.
Tesla raised $2.3 billion in cash through stock sales in February, and the company raised additional $5 billion through stocks sales in September, even as its factory in Fremont, California, was closed for nearly two months due to the COVID-19 crisis.
The company plans to spend $2.5 billion in 2021 and 2022, mostly on new factories and expansion. It said it had $14.5 billion in cash on hand in September, more than twice what it had at the start of the year.
“We’re actually spending money as quickly as we can spend it sensibly,” chief executive officer Elon Musk said in January after the company posted its first annual profit. “There is no artificial hold back on expenditures.”
Tesla has plans to build a new factory in Germany and to add a plant outside Austin, Texas. The company is also expected to begin sales of electric trucks.
“Now in a clear position of strength and out of the red ink with major factory build outs on the horizon (Austin and Berlin), Musk and his red cape are raising enough capital to get the balance sheet and capital structure to further firm up its growing cash position and slowly get out of its debt situation, which throws the lingering bear thesis for Tesla out the window for now,” Wedbush analyst Dan Ives said in a note.
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