Tesla to raise $5bn through share offering

Sales agents include major banks such as Goldman Sachs and Bank of America

Tesla chief executive Elon Musk

Tesla chief executive Elon Musk

 

Tesla said on Tuesday it plans to raise up to $5 billion through a share sale programme to be conducted by Wall Street’s main brokerages.

The sales agents include major banks such as Goldman Sachs & Co, Bank of America Securities, Citigroup Global Markets and Morgan Stanley & Co, the electric carmaker said in a filing.

Tesla shares, which rose about 8 per cent in early premarket trading, were up about 3 per cent after the news.

The move comes a day after a five-for-one stock split took effect, Tesla’s first since its initial public offering about a decade ago.

The company’s high-flying stock has soared over 70 per cent since its split was announced on August 11th, and was trading at over $2,000 on Friday on a split-adjusted basis. The stock was one of the costliest on Wall Street. – Reuters