Tesla Launches $5 Billion Cap Raise just one day after announcing stock split
In a move that will lead to short seller loses but $5 billion in the bank for Tesla, the company yesterday announced a 5 for 1 stock split and is now
In a move that will lead to short seller loses but $5 billion in the bank for Tesla, the company yesterday announced a 5 for 1 stock split and is now, just a day later, announcing that it is looking to do a $5 billion capital raise relying on the massive interest in the company from Wall Street.
The times are good for Tesla and it's stock has increased six fold this year alone, which means that interest in the company is high, so the idea of the 5 for 1 stock split of the company, which has caused the stock to fly another 70% since it was announced on August 11th is really killing those in the market that short the company.
Long story short for those who don't know anything about stocks, today's news tells us that the company is talking with ten major banks in the near future including Goldman Sachs, Bank of America Securities, Citigroup Global Markets and Morgan Stanley & Co, to raise $5 billion and strengthen its balance sheet, giving it the power to thwart any future debt issues and put in a stronger position.