Tesla Files to Sell Another $5 Billion of Stock - TheStreet

Tesla Files to Sell Another $5 Billion of Stock

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Another day, another month, another story about Tesla  (TSLA) - Get Report stock -- this time that the company is issuing even more shares following its recent stock split.

Tesla on Tuesday revealed plans to sell up to $5 billion worth of its stock in an "at-the-market" offering program designed to take advantage of the electric car and battery maker’s recent stock price surge and split.

In a Securities and Exchange Commission filing, Tesla disclosed that it has entered into a so-called “equity distribution agreement” to sell the additional allotment of up to 10 million shares, or about 1.1% of its total shares outstanding.

The move comes amid a banner year for Tesla, which has seen its share price gain nearly 500% amid stronger-than-expected sales and a quicker-than-anticipated path toward profitability – something that seemed allusive at the beginning of the pandemic in March but which has since been proven wrong by record sales.

It also follows the Palo Alto-based company’s 5-for-1 stock split, which was announced on Aug. 11 and went into effect as of Aug. 31.

To be sure, analysts, investors and TheStreet's Jim Cramer and Tesla Daily Maven Rob Maurer are all awaiting Tesla's highly anticipated Battery Day on Sept. 22.

In an interview with Maurer, Cramer said Battery Day is a must-watch. “What’s key to my valuation, Rob, is what Elon Musk will say on September 22,” Cramer said.

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