Tesla aims to raise $5bn in its biggest issue of new stock in a decade

Electric carmaker seeking to take advantage of almost 1,000% surge in share price

Curated via Twitter from Guardian Tech’s twitter account….

The move comes a day after Tesla completed a 5-for-1 stock split which sparked a share price rise that saw co-founder Elon Musk overtake Facebook’s Mark Zuckerberg as the world’s third-richest man.

The move comes a day after Tesla completed a 5-for-1 stock split which led to co-founder Elon Musk overtaking Facebook’s Mark Zuckerberg as the world’s third-richest man.

The move comes a day after Tesla completed a 5-for-1 stock split which led to co-founder Elon Musk overtaking Facebook’s Mark Zuckerberg as the world’s third-richest man.

But since then it has recovered and in July it reported a profit for the fourth quarter in a row. “Now in a clear position of strength and out of the red ink, Musk and his red cape are raising enough capital to get the balance sheet and capital structure to further firm up its growing cash position and slowly get out of its debt situation,” said Dan Ives, analyst at Wedbush. “This is a smart move at the right time for Musk & Co. after the parabolic rally in shares and with the appetite strong among investors.

Tesla is aiming to raise up to $5bn (£3. 7bn) in its biggest issue of new stock in a decade, as the electric carmaker takes advantage of an almost 1,000% surge in its share price over the last year.

Musk, who is currently in Germany as part of a multi-stop European trip that has included a stop in the UK, has used Tesla’s share price as a cheap means of raising money to continue to fund its expansion plans instead of tapping debt markets.

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