Tesla stock slammed as company announces plan to issue up to $2 billion in new shares
By Ciara Linnane
Published: Feb 13, 2020 7:52 a.m. ET
Tesla Inc. shares TSLA, -1.73% slid 5.8% in premarket trades Thursday, after the electric-car maker said it is planning to offer about $2 billion of common stock in an underwritten deal. The company said Chief Executive Elon Musk will participate in the offering by purchasing up to $10 million in new shares. Board member Larry Ellison will also participate by buying up to $1 million in stock. Proceeds of the deal are slated to be used to bolster the company's balance sheet and for general corporate purposes. Goldman Sachs and Morgan Stanley are underwriting the deal and have a 30-day option to acquire another $300 million in stock. Shares have gained 149% in the last 12 months, while the S&P 500 SPX, -0.36% has gained 23%. Read all of MarketWatch's recent coverage of Tesla and CEO Elon Musk.