Tesla Reduces Uncertainty Raising $500 Million in Stock Sale
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The decision by Tesla Motors Inc. to sell more shares and raise $500 million gives Elon Musk’s electric-car company a little more breathing room until it can efficiently produce its Model X sport utility vehicle.
“This takes away the bear argument that Tesla doesn’t have enough cash,” Ben Kallo, an analyst with Robert W. Baird & Co., said in an interview Thursday. “And having Elon buy on the deal, as he’s done in the past, shows his confidence going forward. It takes uncertainty off the table, and you’re seeing the stock trade up a bit today as a result.”