For the second time this year, Tesla is raising another $5 billion as the company enjoys an unprecedented stock spike and valuation growth during 2020.
Here’s how Bloomberg/LA Times reported it Sept. 1:
“Tesla Inc. plans to sell as much as $5 billion of shares, capitalizing on its high-flying price and on a recent stock split that made it more accessible to individual investors. The electric-car maker will sell the shares ‘from time to time’ through an agreement with several banks, according to a regulatory filing. The Palo Alto company plans to use the proceeds to strengthen its balance sheet and for general corporate purposes.”
Now, today, Reuters reports on how the new capital raise corresponds to recent achievements like Tesla’s addition to the S&P 500 in November.
Then there’s the stock trajectory of this tech giant – earlier in the year, a run up from around $500 per share to $2000 per share preceded a 5 to 1 stock split. Since then, Tesla has added another 25% or so, with current share pricing resting around $640, or over 600%of prior values.
All of this massive growth has greatly enriched Elon Musk, the genius behind Tesla origins. Musk is reportedly now worth $155 billion as the second richest person in the world.
Although some feel that current Tesla’s stock price is trapped in a bubble and can’t continue to rise forever, Tesla is still innovating and pushing the envelope on its electric vehicle empire.
One such new evolution is the Cybertruck, with its exoskeleton and armor glass that guard remarkable new auto technology.
“Now entering a new class of strength, speed and versatility—only possible with an all-electric design,” Tesla writers remark on the web site. “The powerful drivetrain and low center of gravity provides extraordinary traction control and torque—enabling acceleration from 0-60 mph in as little as 2.9 seconds and up to 500 miles of range.”
Watch Tesla’s stock price to see if this monumental EV company goes higher or not.