Sections

ideals
Business Essentials for Professionals



Second Share Sale Worth $5billion In Three Months Launched By Tesla


12/08/2020


Second Share Sale Worth $5billion In Three Months Launched By Tesla
With the meteoric rise in its share price in recent times, United States based electric car maker Tesla Inc plans to ride the wave of its stellar share prices and unveiled a $5 billion capital raise on Tuesday which if the second such move by the company in three months.
 
The market value of the company was pushed over $600 billion with the shares of the company touching a new high on Monday which has effectively sealed its position as the most valuable auto company in the world even though Tesla makes only a fraction of the number of cars that its rivals such as Toyota Motor, Volkswagen and General Motors make annually.
 
The electric car maker said in a filing that its sale will be conducted by yen major banks, including Goldman Sachs, Citigroup Global Markets and Morgan Stanley. No timetable for the completion of the sale was provided by the company.  
 
The decision last month of adding Tesla to the S&P 500 index has further provided an impetus to the increase demand for the company’s shares. Tesla is also amongst the most valuable companies ever to join the main US stock market benchmark.
 
There are however some critics, investors and analysts at Wall Street who believe that the stocks of the company is in a bubble with some of them even warning against adding the shares to the S&P 500 at current levels.
 
Analysts’ median price target on the stock stands at $400, $230 short of the current price.
 
So far this year, the shares of tesla has grown by 670 per cent which has propelled the net worth or the personal wealth of its Chief Executive Officer Elon Musk to $155 billion from $27 billion. That according to the Bloomberg Billionaires Index, has made Musk the second richest person in the world.
 
With the company setting up ambitious targets of massive and aggressive expansion in production of its existing vehicles as well as construction of new manufacturing facilities near Berlin, Germany and Austin, Texas and in order to ease its future debt pressures because of these plans, Tesla said in September that it would raise $5 billion from the market.
 
New lines of vehicles, including a semi-truck called the Tesla Semi and its futuristic Cybertruck, are also planned to be launched by the company.
 
The company’s shares fell 1.3% to $633.73 in premarket trading.
 
(Source:www.businessworld.in)


In the same section
< >

Saturday, October 23rd 2021 - 16:38 US FDA Approves Roche's Implant For Chronic Eye Disorder