Tesla will sell around $ 2 billion in new shares on the stock exchange. The executing banks may also purchase shares for $ 300 million. "Tesla intends to use the proceeds to strengthen its balance sheet and for general corporate purposes," the electric car manufacturer said.
In the fourth quarter of 2019, Tesla posted its second quarterly profit in a row. The announced move is surprising, as CEO Elon Musk denied the request for additional capital just last week. In the usual conference call with financial analysts when the quarterly figures were released, Musk said: "There is no point in raising money" because his company will generate positive cash flow.
"Diluting the shares of existing stocks to pay off debts doesn't sound like a wise move," said Musk. Now Tesla does it anyway. And Musk himself will buy up $ 10 million in new shares. Such use of own funds is intended to strengthen the trust of other potential investors.
. (tagsToTranslate) electric car (t) Elon Musk (t) finance (t) Tesla Motors (t) USA