Tesla’s ‘Surprising’ Plan to Raise Money May Add Fuel to Rally

     

Photographer: Patrick T. Fallon/Bloomberg
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Tesla Inc. observers mostly see Thursday’s capital raising as eventually helping long-term investors who are betting on the electric vehicle maker’s success, even if it gave a brief boost to bearish investors.

Shares of Tesla dropped as much as 4.2% on Thursday after the company said it would offer about $2 billion of common stock. But the shares quickly pared those losses and were about 2% higher in late morning trading.