Tesla Equity Sale Comes at a Good Time for Index-Fund Trackers
- Electric-vehicle maker to issue more shares before S&P 500 add
- Index inclusion expected to spark billions in Tesla buying
Tesla more than doubled its planned spending on plants and equipment this year.
Photographer: Qilai Shen/Bloomberg
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With Tesla Inc. about to be added to the S&P 500, people have wondered where index-tracking mutual funds will find the $80 billion of stock they’ll need to own in Elon Musk’s car-maker. Now they know: at least some of it will come from Elon Musk’s car-maker.
Taking advantage of this year’s 677% surge, Tesla said in a filing Tuesday it plans to sell as much as $5 billion in common stock. The news came two weeks before the $616 billion company’s shares are scheduled to enter the S&P 500 Index, the largest addition ever.