Tesla Raises $5b

In 2018 Tesla came very close to running out of cash. If that had happened, all the shorts could have been right, and the stock would have imploded. Since then though, they have managed to open their Chinese factory, which only took 8-months to build and was 65% of the cost compared to their California plant. Having an extra factory has been a game-changer for the company. They are in the process of building a third Gigafactory in Germany, increasing their capacity even further.

In 2020, the Tesla share price is up over 500%! Musk and his team are taking advantage of the surge in share price to raise money to fund a new Gigafactory in Texas, and to pay down debt. In February, Tesla raised $2 billion from stock sales, and yesterday they announced a further $5 billion sale of stock. If Tesla had done this in 2018, they would have added an extra 10% in shares to the market. Thanks to the share price appreciation, this is only 1% now.

By raising this extra money and building more factories, Tesla has effectively guaranteed they won't go bust. Two years ago, Tesla was in a binary position, where it would go to zero or soar higher. Luckily for the planet and for investors, it was the latter.