Electric car maker Tesla has launched a $5 billion capital raise. The move follows Tesla’s disclosure of its plans to have two new Gigafactories: a facility based in Berlin, Germany, and one in Austin, Texas to build the upcoming Cybertruck.
CNET reported that the company in its filing with the Securities Exchange Commission, said it plans to use proceeds from the capital raise to boost its balance sheet, though Reuters reported Tesla already has $8.6 billion in cash and cash equivalents on hand. The capital raise also comes after CEO Elon Musk said there wouldn’t be a need to raise more money as costly projects come to life.
However, there has been a change in fortunes for Tesla stock on Wall Street as its value surged past $2,000 per share ahead of the stock split. Shares hover about 1% higher as of yesterday, down from roughly 8% higher before trading. Tesla is ready to ride the wave as investors continue buying into the automaker’s future.
The latest developments are coming as the company prepares to host the Tesla Battery Day which will kick off on Sept. 22, and Musk has already hinted at some potentially massive capacity gains.
For now, there are not many details about the event, but the event’s announcement may hint at the possibility of a silicon nanowire anode. The technology would help Tesla create more energy-dense batteries with longer usable life.
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