Tesla taps into red-hot investor demand with up to $5 billion in new shares sale
plans to sell up to $5 billion in new shares, as investor demand for the electric vehicle maker's stock shows no signs of abating.on Tuesday, Tesla will sell the shares via an"at the market" offering, or ATM. ATMs allow a company to sell new shares directly into the market through a broker-dealer at current prices, but in any specified amount and over any period of time. Traditional capital raisings are usually done in one batch at a fixed price.
Tesla shares, which have rallied by almost 500% so far this year to record highs, are one of the best-performers on Wall Street. The $5 billion is equal to around only 1% of Tesla's market cap, which is as of Monday's close is worth $498 billion. The prior day, the company's previously announced 5-for-1 stock split, which was aimed at making its shares more affordable for smaller investors, came into effect. Tesla stock surged by as much as 12% to $498 per share.
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