Tesla announces $5B capital raise as stock roars
The automaker said it plans to use proceeds to further strengthen its balance sheet.
A day after Tesla's five-for-one stock split, the electric carmaker launched a $5 billion capital raise. The move comes as Tesla plans for two new Gigafactories: a facility based in Berlin, Germany, and one in Austin, Texas to build the upcoming Cybertruck.
In the filing with the Securities Exchange Commission, Tesla said it plans to use proceeds from the capital raise to strengthen its balance sheet, though Reuters reported Tesla already has $8.6 billion in cash and cash equivalents on hand. The capital raise also comes after CEO Elon Musk said there wouldn't be a need to raise more money as costly projects come to life.
But, things have changed for Tesla stock on Wall Street. Its value surged past $2,000 per share ahead of the stock split. Shares hover about 1% higher so far today, down from roughly 8% higher before trading. Clearly, Tesla is ready to ride the wave as investors continue buying into the automaker's future.
All of the hoopla comes just before another big day for the EV maker. Tesla Battery Day will kick off on Sept. 22, and Musk already hinted at some potentially massive capacity gains. While we don't have details yet, the event's announcement may hint at the possibility of silicon nanowire anode. The technology would help Tesla create more energy dense batteries with a longer usable life.
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