Jim Cramer weighed in on how investors should react to the most recent Tesla news.
Tesla (TSLA) submitted a series of filings with the Securities and Exchange Commission on Thursday, indicating its intentions to raise more cash, and for CEO Elon Musk to potentially buy up to $10 million in Tesla stock.
Musk filed with regulators his interest in purchasing up to 41,896 shares for approximately $10 million. The Palo Alto-based company also filed for a so-called mixed-shelf offering for an undisclosed amount.
A mixed-shelf offering is a type of public offering where certain issuers are allowed to offer and sell securities to the public without a separate prospectus for each one, and without issuing an additional prospectus, wrote TheStreet's M. Corey Goldman.
So, what should investors take away from Tesla's news?
"Well, I think that what you should take away is, is that when you think a company can't get financing, remember Tesla because Goldman Sachs--the Goldman Sachs I worked at--would not have a sell in the research department and do the underwriting," said Cramer. "It just wouldn't happen. When I was working at Goldman, there was a research guy who said, listen, Jim, that's a sell and I brought in a very big underwriting and the underwriting was killed, goes to the analyst, wouldn't get behind it. Now the analyst is against it and they do the underwriting. It's pretty telling how things have changed."