Tesla Capitalizes On Stock’s Hot Streak With Offering To Raise More Than $2 Billion

. Funds from the offering will come in handy as Tesla said in its annual 10-K filing also released today that it’s budgeting up to $3.5 billion this year for capital investments for a range of projects, including factory construction and upgrades to new products including the Cybertruck pickup and Semi.

During the company’s Jan. 29 earnings call with analysts, Musk said rising cash generation could support capital investment as a reason raising new capital wasn’t necessary in the the near term. “It doesn't make sense to raise money because we expect to generate cash despite this growth level,” he said.Ben Kallo, an equity analyst with Baird who rates Tesla “Neutral,” said in a research note that the offering is “prudent given current share prices.

“We believe TSLA’s decision to raise capital was smart; in fact we think investors will argue the offering should have been larger,” Kallo said. “That said, we do note management indicated on the Q4 call that it ‘doesn’t make sense’ to raise money given upcoming cash generation, so the announcement was somewhat surprising.”

Goldman Sachs and Morgan Stanley are lead managers for the offering, with Barclays, BofA Securities, Citigroup, Credit Suisse, Deutsche Bank and Wells Fargo Securities and Societe Generale also participating.

Elon is a gold mine. Any project which it will create will attract investors.

Yass elon u r the one elonmusk hero of the futuristic entrepreneur

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market live updates: Dow up 200, Charlie Munger comments on Tesla and moreStock market live updates: “I would never buy [Tesla] and I would never sell it short...I think Elon Musk is peculiar and he may overestimate himself, but he may not be wrong all the time,” Charlie Munger said. .....ok then. Probably same reason these guys didn’t buy Google and now regret it He's protected with subsidies so I'm not impressed.
Source: CNBC - 🏆 12. / 72 Read more »

China and Tesla: Here's what's hot in the ETF space right nowChina- and Tesla-based exchange-traded funds are gaining traction, and the managers behind them see more room for growth.
Source: CNBC - 🏆 12. / 72 Read more »

Elon Musk pits an army of Tesla fans against Wall Street analysts, short sellersTesla retail investors and car owners make up a global fan base that champions the views of Elon Musk online and fight Tesla detractors. Were any verbal conflicts recorded? elonmusk Tesla - could I borrow a few of you for a moment to look at this?
Source: latimes - 🏆 11. / 82 Read more »

Driver in fatal 2018 Tesla crash reported prior 'Autopilot' issueA driver killed in a March 2018 Tesla autopilot crash in California reported pre...
Source: Reuters - 🏆 2. / 97 Read more »

Nikola Badger, electric pickup with better range than Tesla Cybertruck - Business InsiderA new electric pickup truck with a longer range than Tesla's Cybertruck will beat the hotly anticipated EV to market — check out the Badger Will never make it to market False equivalency. It only goes 300 miles on batteries.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Volta Trucks CEO says company taking page from Apple, Tesla playbook - Business InsiderThe startup has yet to sell or even build a truck, but some of the biggest fleets are interested, founder Carl-Magnus Norden said in an interview.
Source: BusinessInsider - 🏆 729. / 51 Read more »