Elon Musk, CEO of Tesla, has reported that the shares of the company are too pricey, however, that doesn’t deter the automaker from cashing in on its impressive stock profits.
Tesla has confirmed that “from time to time,” it will offer up to 5 billion in additional shares at current market prices. This has been the second such statement made in a couple of months.
This move makes sense as Tesla’s shares have soared 677 percent this year. They’ve surged 363 percent after Musk tweeted in May stating that according to him the stock price of Tesla was too high.
Tesla isn’t in dire need of money, unlike in the past. In late September, it had $14.5 billion on hand, more than twice what it had at the beginning of the year. Rather the stock sale seems to be an attempt to turn paper earnings into real assets, considering that for the first time this week the value of the company hit $600 billion.
Tesla has a handful of major expenses looming on the horizon. The company is in the process of building new plants in Germany and outside of Austin, Texas, and is aiming to bring to market a pickup truck and a semi-tractor for the first time.
Musk recently announced that he had moved to Texas from California because he felt the state had begun to take its entrepreneurs for granted. Texas doesn’t collect state income or capital gains tax for individuals, which serves as a potential boon for Musk.
Both Tesla & SpaceX, Musk’s aerospace company, are still headquartered in California. Musk, however, disputed with officials over the closure of Tesla’s Fremont plant due to the pandemic this year.