Business

Tesla launches US$5 billion capital raise

Tesla Inc has entered an equity distribution agreement with some banks to sell shares worth up to US$5 billion, the electric-car maker said in a regulatory filing on Tuesday.

FILE PHOTO: A Tesla sign is seen on the Shanghai Gigafactory of the U.S. electric car maker
FILE PHOTO: A Tesla sign is seen on the Shanghai Gigafactory of the U.S. electric car maker in Shanghai, China, Dec. 30, 2019. REUTERS/Yilei Sun/File Photo
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REUTERS -Tesla Inc unveiled a US$5 billion capital raise on Tuesday, its second such move in three months as the electric-car maker cashes in on a meteoric rally in its shares this year.

The company's shares, which touched a record high on Monday, reversed course to fall over 2per cent in premarket trading.

Tesla entered an equity distribution agreement with banks including Goldman Sachs and Citigroup Global Markets to sell its common stock, having aggregate sales proceeds of up to US$5 billion. (https://bit.ly/33QXGmU)

(Reporting by Munsif Vengattil; Editing by Shounak Dasgupta)

Source: Reuters