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Tesla wraps up $5 billion stock offering in a single day

Tesla delivery push as Q3 comes to an end. (Credit: Harbles/Twitter)

Tesla (NASDAQ: TSLA) completed the sale of its $5 billion common stock offering in a single day, according to a new 8-K document the company filed with the Security and Exchange Commission (SEC) on December 9.

On December 8th, the electric automaker announced that it would initiate a $5 billion capital raise, resulting in a dilution of about 0.8%. The sale provided an additional $5 billion to the already formidable status of its balance sheet.

It took just a single day for the $5 billion in shares to be sold, beating the previous record of three days, which was recorded in early September. Tesla offered the sale of $5 billion worth of TSLA stock on September 1, and completed it on September 4.

The company wrote on the 8-K:

“On December 9, 2020, Tesla, Inc. completed the sale of $5.0 billion (before commissions) of its common stock through its “at-the-market” offering program previously disclosed on December 8, 2020. The final settlement of the shares sold is expected to be completed by December 11, 2020.”

In the initial filing on December 8, Tesla stated that ten major banks, including Goldman Sachs, Citigroup Global Markets, and Morgan Stanley would be conducting the $5 billion sale. The company expects the final settlement of shares to be completed later today.

Tesla shares have rallied 650% so far in 2020, and 15% of that has been attributed to the movement of the stock after it was announced that the company would join the S&P 500. This move is expected to take place on December 21 and will occur in one tranche. Tesla is the largest company to ever enter the S&P Index and is expected to be the fifth-most valuable company in the S&P 500 once the automaker’s move is completed.

At the time of writing, TSLA shares were trading at $602.55.

Disclaimer: Joey Klender is a TSLA Shareholder.

Tesla wraps up $5 billion stock offering in a single day
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