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Why Tesla Stock Jumped Thursday

The stock's gain follows news this morning that the automaker decided to raise capital despite previously asserting it wouldn't make sense to do so. Wedbush analyst Daniel Ives, who has a neutral rating on the stock and a $710 12-month price target, said the stock offering is a "smart move," positioning the company to better capitalize on growth opportunities. Tesla said on Thursday that it plans to raise approximately $2 billion to $2.3 billion before discounts and expenses as part of an offering of common stock. Management had previously said an equity raise wouldn't make sense because the company believed it had enough cash on hand and sufficient enough cash flow from operations to fund both regular operations and growth investments from internal funds. But a 30% jump in the stock price since management said these things seems to have made an equity offering too good to pass up, as it will dilute shares less than it would have based on a lower stock price.

First found on: www.nasdaq.com And then on: 1 other references

1 other references

Why Tesla Stock Jumped Thursday

Published on 13/02/2020 07:40 by: www.nasdaq.com

Why Tesla Stock Jumped Thursday

Published on 13/02/2020 07:40 by: www.fool.com