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Added on the 22/02/2019 11:10:37 - Copyright : Wochit
Tesla's recently announced plan to sell up to $5 billion in shares. Wedbush analyst Dan Ives said this is "the smart move at the right time" for CEO Elon Musk and the rest of the company. On Tuesday, Tesla revealed it will offer shares "from time to time" with 10 banks serving as sales agents. The announcement comes as Tesla stock sits 667% higher year-to-date. The massive rally allows Tesla to "build up its treasure chest and capital-expenditure capabilities" while shares sit near record highs, Ives said. Business Insider reports that Tesla dipped as much as 1.7% in early trading on the news.
Last year Tesla CEO Elon Musk predicted autonomous driving would boost his company's market capitalization to $500 billion. On Monday, Tesla's market cap soared as high as $498 billion even though Tesla is still refining its self-driving software. Business Insider reports that it has only released a beta version to a limited number of customers. Musk made the claim during an investor call in May 2019, when Tesla's market cap was less than $45 billion, CNBC reported. The Tesla chief projected in 2015 that his company's market cap could balloon to $700 billion by 2025.
On Friday, Tesla climbed as much as 8.4%. That's the 11th straight day of gains as the automaker's massive rally continues into the new year. The billionaire investor Chamath Palihapitiya said Thursday that Tesla's market cap stood to triple from its already lofty levels. Investor Michael Burry told Tesla bulls in a tweet on Thursday that they should enjoy the rally "while it lasts."