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Tesla announces additional $ 5 billion share issue

North America / Business and Finance

Tesla quotes went down in pre-market trading on Tuesday after the announcement of a new sale of shares, the price of which Elon Musk himself calls "too high."

Tesla announces additional $ 5 billion share issue

In documents filed with the US Securities and Exchange Commission (SEC), it is noted that the company entered into an agreement with brokerage companies to sell up to $ 5 billion of Tesla common shares under the at-the-market offering program. </p >

Such a program allows a public company to raise relatively small amounts of capital in the secondary market by selling newly issued shares as needed, based on the current value of the securities.

According to company analyst Daniel Ives, the company's decision to raise capital in this way is "clearly positive and further strengthens" the further growth of its shares.

Ten major banks, including Goldman Sachs, Citigroup Global Markets and Morgan Stanley, will conduct the deal, the automaker said in a statement.

This is the second case of such fundraising in the last few months - in September Tesla already reported the sale of shares for $ 5 billion.

Elon Musk and the company take advantage of the moment for the placement - quotes are at a historic high. Just yesterday, the price rose by 7%, and today, before the release of this news, it grew by another 3%. Tesla shares have gained 667% since the beginning of the year. Their recent growth has been boosted by the November decision to include its shares in the S&P 500, as well as the publication of the company record revenue and profit for the third quarter.

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