Shares of Tesla Inc. dropped Tuesday after the electric vehicle market leader filed for the sale of up to $5 billion worth of stock.
The share sale plan comes after the stock shot up 12.8% over the past three days to Monday’s record close of $641.76. That rally boosted Tesla’s market capitalization to $6.08 billion, enough to make it the sixth most valuable U.S. company.
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The stock TSLA, +7.13% slid 1.8% ahead of Tuesday’s open. The stock has soared 94.4% over the past three months through Monday, and 667.1% year to date, while the S&P 500 index SPX, -0.19% has gained 14.3% this year.
Telsa said it entered into an equity distribution agreement with a number of Wall Street banks, including Goldman Sachs, Citigroup, Barclays, BNP, BofA Securities, Credit Suisse, Deutsche Bank, Morgan Stanley, SG Americas and Wells Fargo.
Shares will be sold from “time to time” through an “at-the-market” (ATM) offering program.
Based on Monday’s stock closing price of $641.76, the offering plan could represent about 7.79 million shares, or about 0.8% of the shares outstanding.