Tesla plans to raise $5 billion through a share sale program
On Tuesday, Tesla Inc. (TSLA) said that it plans to raise $5 billion through a share sale program. The move came after Tesla announced its 5-for-1 stock split on Monday.
“This move may lead to higher retail shareholding. You are providing a good entry point. It is enabling split into smaller fractions, in turn enabling higher participation in the market,” KR Choksey Investment Managers’ Group Managing Director Deven Choksey said.
The American electric vehicle company said that Wall Street’s prominent brokerages would conduct the share offering.
According to Tesla’s filing, different sales agents would participate including Goldman Sachs & Co. (GS), Bank of America Securities Inc. (BAC), Citigroup Global Markets Inc. (C), and Morgan Stanley & Co. (MS).
Tesla’s shares went up by 8% in early premarket trading.