Hyperdrive
Tesla Plans Share Sales Up to $5 Billion on Musk Growth Push
- Electric-car maker ‘weaponizing’ its cheap cost of capital
- Company building out production capacity with new factories
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Tesla Inc. is capitalizing on its status as the world’s most valuable automaker with a share offering to fund growth as the company doubles its factory count and attempts to solidify its position as electric-car global market leader.
The Palo Alto, California-based company will sell as much as $5 billion in shares “from time to time” through an agreement with several banks, according to a regulatory filing Tuesday. Tesla plans to use the proceeds to strengthen its balance sheet and for general corporate purposes as Chief Executive Officer Elon Musk makes the most of surging demand from retail investors for the company’s shares.