Tesla announced on Thursday it plans to raise up to $2\nbillion, of which $1.35 billion comes from convertible paper and $650 million\nfrom new equity, which includes a major purchase from Chief Executive Elon\nMusk.<\/p>\n\n\n\n
Musk intends to buy about $10 million of shares of the\nelectric car manufacturer in the new offering. The total offering is 2.7\nmillion Tesla shares. Prior to the IPO, Musk had about 20% of Tesla’s\noutstanding shares valued at about $12.6 billion.<\/p>\n\n\n\n
The move comes just a week after Musk postponed questions\nabout the company’s capital increase anytime soon.<\/p>\n\n\n\n
” I don\u2019t think raising capital should be a substitute\nfor making the company operate more effectively, Musk told shareholders at the\ncompany’s quarterly conference. \u201cI do think there is some merit to raising\ncapital, but this is sort of probably about the right timing.<\/p>\n\n\n\n
Musk was pressed on the subject by Wall Street analysts, as\nTesla acquired about $2 billion in cash after the first quarter of 2019.<\/p>\n\n\n\n
Tesla shares fell earlier in the pre-market session on\nThursday when the company set up an initial filing indicating it would offer a\nmix of debt and equity securities. The stock reversed its course and was\ntrading 4.8% higher when a second file revealed the details of the offeiring,\nincluding Musk\u2019s interest in buying new shhares.<\/p>\n\n\n\n
Musk’s purchases were short-term reliable buying signals for\nthe stock. After the last five purchases by Musk, stocks rose on average by 41%\nin the next three months. Tesla shares have been under pressure recently,\ndropping almost 30% this year.<\/p>\n\n\n\n
“There was growing fears that this company was going to\nneed incremental cash going to the second half of the year,” Dan Ives,\nmanaging director of equity research at Wedbush Securities said. “Now\nthere\u2019s a relief because the liquidity issue and the finance concern could be\nput to rest in the near term.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Tesla announced on Thursday it plans to raise up to $2 billion, of which $1.35 billion comes from convertible paper and $650 million from new equity, which includes a major purchase from Chief Executive Elon […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[63],"tags":[66,79,10,58,57,70,47,86,31,18,80,23,46,85],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1202"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1202"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1202\/revisions"}],"predecessor-version":[{"id":1204,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1202\/revisions\/1204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1203"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}