California: 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 company informed the securities regulators its intention to sell up to 10.03 million shares and use the proceeds for ‘unspecified general corporate purposes.’
The electric-car maker will sell the shares “from time to time” through an agreement with several banks, according to a regulatory filing. It also stated that the actual amount of the offering cannot be determined at present.
In its filing, the company said, “We have entered into an equity distribution agreement, or the equity distribution agreement, with Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, SG Americas Securities, LLC, Wells Fargo Securities, LLC and BNP Paribas Securities Corp., as our sales agents, under which we may offer and sell from time to time our common stock having an aggregate offering price of up to USD 5,000,000,000.”
Telsa, as on June 30, had $8.6 billion in cash and the roughly same amount in debt, excluding vehicle and solar panel financing. The company gained nearly 500 per cent from the beginning of the year. Before the 5-for-1 stock split that was implemented on Monday, Telsa’s share price was $2,213.40.