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Tesla announces plans to sell up to $5b in new stock shares

In this March 9, 2020, file photo, Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington. (AP-Yonhap)
In this March 9, 2020, file photo, Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington. (AP-Yonhap)


DETROIT (AP) -- A day after its 5-for-1 stock split took effect, Tesla is announcing plans to sell up to $5 billion worth of common shares.

The electric car and solar panel maker says in a filing with securities regulators that it intends to sell up to 10.03 million shares and use the proceeds for unspecified general corporate purposes.

The sales would be made "from time to time" and Tesla says the actual amount of the offering can't be determined at present.

The stock would be sold through 10 different brokerage houses, and each would get a 0.5 percent commission.

Tesla shares rose over 2 percent in premarket trading Tuesday after the filing with the US Securities and Exchange Commission. It closed Monday at $498.32. (AP)

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