Tesla will cash in on surging stock price with $5 billion stock sale: Author – Timothy B. Lee

Ars Technica

Tesla will cash in on surging stock price with $5 billion stock sale

Enlarge (credit: David Butow | Getty Images)

Tesla will sell up to $5 billion in new shares, the company announced in a Tuesday filing with the Securities and Exchange Commission. The company didn’t give any specific timeline for completing the stock sale.

The announcement comes one day after Tesla completed a five-for-one stock split that sent Tesla’s stock soaring. When Tesla announced the split on August 11, Tesla’s stock was worth less than $1,400. Investors reacted enthusiastically, pushing the stock up 60 percent to over $2,200 over the following three weeks.

Since the split took effect on Monday, the stock has surged even higher and is now worth $480—$2,400 in pre-split terms.

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