Tesla Is Raising Another $5 Billion To Capitalize On Stock's Near-700% Surge This Year

Plus: Here’s What’s Holding Up The Stimulus Deal

TOPLINE

In an effort to beef up the firm's balance sheet and capitalize on massive stock gains this year, electric-carmaker Tesla said on Tuesday it will raise up to $5 billion in a new stock offering, the second time since September that the firm's raised cash by issuing new shares.

KEY FACTS

•	In a Tuesday regulatory filing, Tesla said it could issue up to 7.8 million new shares based on Monday's closing stock price, increasing the number of shares outstanding to roughly 955.6 million.

•	The firm said it plans to use offering proceeds to "further strengthen" its balance sheet by investing in high-grade bonds, cash equivalents or U.S. government securities.

•	Tesla shares are down 1% on Tuesday following the announcement, but still up an eye-popping 660% this year alone; meanwhile, the tech-heavy Nasdaq has climbed 37%.

•	The firm previously announced another $5 billion capital raise on September 1 after year-to-date stock gains of roughly 450%.

CRITICAL QUOTE

"Now in a clear position of strength and out of the red ink with major factory build-outs on the horizon (in Austin and Berlin), Tesla is raising enough capital to get the balance sheet and capital structure to further firm up its growing cash position and slowly get out of its debt situation," Wedbush analysts Daniel Ives and Strecker Backe wrote on Tuesday.