Car Industry

Tesla issues $2B worth of new common stock

Want a piece of Tesla? Now's a good time.

Will we see another stock rally?
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Tesla plans to offer another $2 billion worth of common stock, the automaker announced Thursday. This means anyone can own a share of the carmaker that continues to take the world by storm.

In the announcement, the company said it plans to use the proceeds to "further strengthen its balance sheet, as well as for general corporate purposes." In other words, Tesla wants more cash on hand.

The news comes as a total about-face after CEO Elon Musk declared during Tesla's fourth-quarter earnings call that the company didn't see a need to raise new capital. However, with a recent rally in the automaker's share price, someone inside clearly saw now as a good opportunity. Tesla shares have spiked tremendously in recent months, notching an all-time high of $968.99 per share earlier this month.

As of this writing, shares were down and traded at around $763 per share. Still, the figure is up nearly $200 per share since this time last month -- and it helps Musk inch his way closer to a multimillion pay day, as stated in an aggressive pay package.

With the new stock issuing, Musk plans to buy $10 million worth, while Larry Ellison, a member of Tesla's Board of Directors, will buy $1 million worth, which will certainly help underscore confidence in the latest offering.

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