Jim Cramer: Tesla's Common Stock Offering a Good Thing in the Long Run

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Tesla  (TSLA) - Get Report said it will raise $2 billion in new common stock, less than two weeks after founder and CEO Elon Musk said it "didn't make sense" to raise money.

Tesla said it will use the cash to shore up its balance sheet, as well as for 'general corporate purposes". Tesla said Musk will take up around $10 million worth of stock from the sale, while board member Larry Ellison will purchase $1 million.

"The aggregate gross proceeds of the offering, assuming full exercise by the underwriters of their option to purchase additional securities, would be approximately $2.3 billion before discounts and expenses," Tesla said in a statement. "Tesla intends to use the net proceeds from the offering to further strengthen its balance sheet, as well as for general corporate purposes."

Watch the full video above for Cramer's full thoughts on Tesla.

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