Elon Musk Seeks to Raise $5 Billion By Selling Tesla Stock

The company said it will sell shares "from time to time," and right now it needs to finance the construction of its plant in Germany.
Elon Musk Seeks to Raise $5 Billion By Selling Tesla Stock
Image credit: Vía Engadget

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.
Entrepreneur Staff
2 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

To take advantage of the strong demand for electric cars, Elon Musk seeks to raise $ 5 billion in capital through Tesla by conducting a share offering.

It is the second time that the tycoon has put shares of the electric vehicle and solar panel company up for sale in three months. In September, Tesla said it planned to sell up to $ 5 billion in common stock, just one day after its 5-1 split in stocks took effect.

In a regulatory document, Tesla Inc. said Tuesday that the stock sale would be done "from time to time." These will be sold in ten different brokerages and each one will receive a commission of up to 0.25%.

According to Daniel Ives of investment and financial services firm Wedbush, the current move makes sense. In a note to customers, he noted that this responds to the rise in the company's shares and the interest of investors in the electric car market.

 

 

This year, Tesla shares rose more than 600% in value, closing Tuesday at $ 649.88, an increase of 8%.

The Palo Alto, California-based firm must finance the new plant it is building in Germany , in addition to the one it plans to build in Austin, Texas. It is also preparing to launch its new truck and tow truck next year.

The company posted a net profit of $ 331 million in the July-September quarter, its fifth consecutive quarter of profitability. To satisfy government pollution and fuel economy regulations, Tesla sold electric car credits to other producers, bringing in $ 397 million in profits.

Once Tesla reports the results for the fourth quarter of this year, in early 2021, it could be known if the company will post its first full year of earnings.

See also: Elon Musk and Jeff Bezos' space projects may exempt taxes to attract investors

 

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources

Book Sale - Save 60%!


Through 6/20/21, save on our collection of recommended side hustle and Start Your Own books, including:

  • Start Your Own eBay Business
  • Start Your Own Business
  • Start Your Own Etsy Business
  • And more

Use code SIDEHUSTLE2021 to claim your savings!

Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur