Autos

Why Elon Musk’s surprise $2 billion Tesla stock deal makes sense

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Tesla CEO Elon Musk unveils the Cybertruck at the TeslaDesign Studio in Hawthorne, Calif. The cracked window glass occurred during a demonstration on the strength of the glass.

Robert Hanashiro | USA TODAY | Reuters

Tesla shares briefly sold off this morning with the announcement that the company plans to raise $2 billion by selling new shares of stock — diluting the shares of people who already own Tesla — but analysts are saying the money will let Tesla expand faster and secure its sources of batteries as it pushes into giant markets for small sport-utility vehicles and pickup trucks.

The company said it plans to use the proceeds “to further strengthen its balance sheet and for…



Source cnbc.com

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