Most of Tesla’s chief executives said the carmaker’s planned $2billion common stock issue, announced on Thursday, was “justified” and pushed its share price up to an eye-popping $7,000 over the next five years. CATHIE WOOD, FOUNDER AND CHIEF EXECUTIVE OF ARK INVEST, SAID ON SOCIAL MEDIA THAT TESLA’S PLAN TO ISSUE $2 BILLION IN SHARES WAS SIGNIFICANT, SUPPORTING ITS PREVIOUS BULLISH VIEW THAT THE STOCK COULD REACH $7,000 OVER THE NEXT FIVE YEARS.
“This program reinforces our confidence that the company will continue to capture its share of the electric vehicle market over the next five years.” “
Tesla announced a $2 billion issue of common stock On Thursday. Musk himself will buy up to $10m of stock, while Tesla board member Larry Ellison will buy up to $1m. Tesla said it plans to use the proceeds of the offering to “further strengthen its balance sheet and for general corporate purposes.” “
Wood said she would “not be surprised” if Tesla announced plans to build another superfactory in China with an influx of capital. This, she said, implies “confidence in China’s resilience”.
At the end of January, Wood raised Tesla’s five-year target price to $7,000, based on falling costs and growing demand for electric vehicles, as well as the company’s growth potential in other areas, such as Robotaxis.