According to Reuters, Tesla Inc had made an about-turn on Thursday, while announcing its plans to raise $2 billion in a stock offering. This is when the electric car maker taps into an astronomical jump in its share price in the past months.
CEO Elon Musk assured investors repeatedly that Tesla would not need to raise money. Last month, Musk had said that it does’nt really make sense to raise money. He even said that diluting the company to pay down debt doesn’t sound like a wise move. Tesla said that it would offer 2.65 million shares, out of which, Musk would buy up to $10 million in shares. Oracle co-founder Larry Ellison, would purchase $1 million Tesla shares.
Tesla shares had fallen almost 7 percent, in premarket trading that had tripled since October, when the company had posted a rare quarterly profit. Talking of the market capitalisation, it’s now worth more than the combined value of General Motors and Ford Motor.