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Tesla received a significant influx of money from investors by issuing new shares. September 1, 2020, Tesla Inc. (NASDAQ: TSLA) stated it plans to raise up to $5 billion through a share sale program to be conducted by Wall Street's main brokerages. Sales agents include major banks such as Goldman Sachs & Co, Bank of America Securities Inc, Citigroup Global Markets Inc, and Morgan Stanley & Co.
Tesla Enters Agreement To Raise $5 Billion through Common Shares offeringhttps://t.co/Mjcs8EGZIF— Tesmanian.com (@Tesmanian_com) September 1, 2020
On September 8, Tesla announced the completion of a $5 billion capital increase. Banks, on behalf of Tesla, sold $5 billion in shares to large clients dedicated to this.
Tesla currently has ambitious growth targets and is investing heavily in the construction of Giga Berlin, Giga Texas, Giga Shanghai expansion and the Fremont factory. In parallel, the company is developing battery cells and building production lines for this. Accordingly, the company's funding needs are high.
In the Statement from FORM 8-K, Tesla indicated that it intends to use the net profit from this proposal to further strengthen the company's balance sheet, as well as for general corporate purposes.
“We currently intend to use the net proceeds from this offering to further strengthen our balance sheet, as well as for general corporate purposes. Pending use of the proceeds as described above, we intend to invest the proceeds in highly liquid cash equivalents or United States government securities.”
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Eva Fox holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
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