After its stock prices skyrocketed to unprecedented highs during the year, Tesla announces its plan for a $5 billion worth of capital raise.
This is the second move on a similar scheme that happened in the last three months.
According to sources familiar with the matter, the clean energy company tapped the industry’s banking juggernauts including Goldman Sachs, and Citigroup Global Markets to sell its common stock.
After the reports circulated in the market, the firm’s shares recorded a 2% drop in pre-market trading.
Such a rally put the EV maker’s market capitalization past the $608 billion threshold, placing it among the most valuable US companies at sixth place.
This is after hitting another record-high in the previous session where per share price hit $641.76 after a robust 12.8% increase.
In the latest market charts, Tesla’s stocks are quick to make a rebound and are currently trading with 7.18% at $641.75 per share. This is against the 0.19% drop in the S&P 500 index.
So far in the year, the Elon Musk-owned company has rallied by 667.1% year-to-date, with a 94.4% hike in the past three months alone.
The biggest booster in the latest turns came after the announcement of its listing in the S&P 500.
The juggernaut eyed its place on the broadest US benchmark since its consecutive upbeat quarter earnings but failed to be included.
It clinched the spot after a sustained impressive earnings report, finally sealing its title as a blue chip firm.
The listing will take place on December 21 and is highly anticipated by investors in varied fields.
Stocks to Soar by Another 300%?
Comparing the figures on Monday’s closing price, the $5 billion offerings is expected to represent around 7.79 billion shares or 0.8% of the outstanding shares.
Meanwhile, experts in the field noted that Tesla stocks could soar another 300% in the stock market now that it ventures into expanding its business offerings.
In an analysis released by venture capitalists, the EV maker’s shares are forecasted to soar to $2500 per share in the next three years.
Such a move will push its market capitalization to $2 trillion, similar to Apple Inc.’s incumbent value.
In recent months, the firm announced its plan to diversify its offerings and venture more into the car insurance business and other profit makers.
Consequently, it made significant strides to be a third party supplier of EV components such as its homegrown tabless battery.
The units are developed to be more cost-efficient and energy-saving than the ones sold in the market today.
- Trading Instrument