Tesla Inc. seeks to capitalize on its meteoric stock surge with $2 billion share sale


by   |  VIEW 204
Tesla Inc. seeks to capitalize on its meteoric stock surge with $2 billion share sale

On Thursday, the 13th of February 2020, the Palo Alto, CA-based e-vehicle manufacturer, Tesla Inc., the dominant-most force in the electrical vehicle industry, had issued a statement saying that the carmaker was exploring an option to raise as much as $2 billion through a stock offering, a move widely contemplated as Tesla Inc.’s approach to get the most out of a space-dive of its shares’ prices which had been doubled up over the past two months.

According to Tesla Inc.’s Thursday’s (February 13th) statement, the CA-based carmaker said it would be offering 2.65 million shares, of which the Tesla boss American billionaire entrepreneur Elon Musk would be purchasing stocks worth of $10 million, while a Tesla management board member alongside Oracle co-founder, Larry Ellison was expected to purchase Tesla stocks worth of at least $1 million.

Although, Tesla Inc.’s latest attempt to raise money amid Wall St. hyperdives largely contradicted the visions of Elon Musk who was quoted saying later on January, “It doesn’t make sense to raise money. Diluting the company to pay down debt doesn’t sound like a wise move,” following release of Thursday’s (February 13th) announcement, Tesla Inc.’s shares’ prices were trading 5.09 per cent higher to $806.52 during preparation of the report, at late US trading hours after falling as much as 3.32 per cent during pre-market trading.