Electric vehicle manufacturer Tesla (Nasdaq: TSLA) on Tuesday, December 8 unveiled its latest capital raise phase worth $5 billion. The raise is Tesla’s second in three months as it seeks to leverage on its outstanding stock rise this year.
About ten major banks, including Goldman Sachs, Citigroup Global Markets, and Morgan Stanley, are expected to carry out the sale. In a filing by Tesla, the company did not provide the schedule for the completion of the sale. According to Tesla:
“The Offering of the Shares pursuant to the Equity Distribution Agreement will terminate upon the termination of the Equity Distribution Agreement by Tesla or the Sales Agents.”
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In September, Tesla indicated that it would sale another $5 billion to ease its future debt pressures. The company has lined up a significant expansion plan that includes releasing new vehicle models and factories in Berlin, Germany and Austin, Texas.
Rising Tesla stock
In recent days, Tesla’s stock has been soaring, and the decision to list it on the S&P 500 index has acted as a catalyst for a significant surge. However, some investors believe the stock is in a bubble and might crumble soon. There are calls not to list Tesla on the S&P 500 under the current status.
On Monday, the shares soared, pushing Tesla’s market value to over $600 billion. The market cap now places Tesla as the most valuable vehicle manufacturer in the world. However, the company’s production remains low compared to rivals like Toyota.
This year Tesla stock has soared by 670% elevating CEO Elon Musk to the second richest man in the world with a net worth of $155 billion.