Tesla shares hit an all-time high on Monday, pushing the electric carmaker’s market value above $ 600 billion.
You’re here Inc on Tuesday unveiled a $ 5 billion capital increase, its second such move in three months as the electric car maker cash in on a meteoric rise in its shares this year.
The company’s shares hit an all-time high on Monday, pushing Tesla’s market value above $ 600 billion and further strengthening its position as the world’s most valuable automaker despite producing only a fraction of rivals such as Toyota Motor, Volkswagen and General Motors.
Ten major banks, including Goldman Sachs, Citigroup Global Markets and Morgan Stanley, will lead the sale, the automaker said in a filing, giving no timeline for its completion.
Demand for Tesla’s shares was further fueled by last month’s decision to add the company to the S&P 500 index, making it one of the most valuable companies to ever join the main benchmark of the US stock market.
Some Wall Street investors and analysts believe Tesla stock is in a bubble, and a few have warned against adding it to the S&P 500 at current levels. The analysts’ median price target for the stock is $ 400, $ 230 lower than the current price.
Tesla’s 670% rise in shares this year also pushed CEO Elon Musk’s net worth from $ 27 billion to $ 155 billion, making him the second richest person in the world, according to the Bloomberg Billionaires Index.
In September, Tesla announced it would raise $ 5 billion to ease future debt pressures as the company sought to massively expand production of its existing vehicles and build new factories near Berlin, Germany and ‘Austin, Texas.
The company is also planning to launch new vehicle lines, including a semi-truck called Tesla Semi and its futuristic Cybertruck.
The company’s shares fell 1.3% to $ 633.73 in pre-market trading.