Last updated on December 8th, 2022 at 02:39 pm
Tesla’s market value has exceeded $ 600 billion
Tesla today announced its intention to raise additional capital by selling $ 5 billion in new shares. This is Tesla’s second such move in the past three months.
Tesla launches second $ 5 billion new share sale in three months
Tesla shares hit an all-time high yesterday, bringing its market value to over $ 600 billion, cementing it as the world’s most valuable automaker. Note that it is often inferior to Toyota Motor, Volkswagen, General Motors, and other competitors in terms of production volume.
Ten major banks, including Goldman Sachs, Citigroup Global Markets, and Morgan Stanley, will sell the new shares. The automaker does not name the date of completion of the sale.
Demand for Tesla shares was further boosted by the decision made last month to add the company to the S&P 500, making it one of the most valuable companies ever listed in a major US stock market indicator.
Some investors and analysts view the current situation as a bubble. The average target price for Tesla shares, as determined by analysts, is $ 400, down $ 230 from the current price. Tesla’s 670% rise this year has already boosted CEO Elon Musk’s net worth from $ 27 billion to $ 155 billion, making him the world’s second-richest according to Bloomberg rankings.
