© Reuters. FILE PHOTO: A Tesla signal is seen on the Shanghai Gigafactory of the U.S. electrical automotive maker

(Reuters) -Tesla Inc unveiled a $5 billion capital increase on Tuesday, its second such transfer in three months because the electric-car maker cashes in on a stellar rise in its shares this yr.

The corporate’s shares touched a file excessive on Monday, pushing Tesla (NASDAQ:)’s market worth above $600 billion and additional cementing its place as essentially the most useful auto firm on the planet regardless of manufacturing that may be a fraction of rivals equivalent to Toyota Motor (NYSE:), Volkswagen (DE:) and Basic Motors (NYSE:).

Ten main banks, together with Goldman Sachs (NYSE:), Citigroup (NYSE:) World Markets and Morgan Stanley (NYSE:), will conduct the sale, the carmaker stated in a submitting, giving no timeline for its completion. (https://

Demand for Tesla’s shares has been additional fueled by the choice final month so as to add the corporate to the , making it one of the useful corporations ever to affix the principle U.S. inventory market benchmark.

Some traders and Wall Avenue analysts imagine Tesla’s inventory is in a bubble, and some have warned towards including it to the S&P 500 at present ranges. Analysts’ median value goal on the inventory stands at $400, $230 brief of the present value.

The 670% rally in Tesla’s shares this yr has additionally boosted Chief Govt Officer Elon Musk’s internet value from $27 billion to $155 billion, making him the world’s second-richest particular person, in keeping with the Bloomberg Billionaires Index.

In September, Tesla stated it might increase $5 billion to ease its future debt pressures as the corporate seeks to massively broaden manufacturing of its current automobiles and construct new factories close to Berlin, Germany and Austin, Texas.

The corporate additionally has plans to launch new traces of automobiles, together with a semi-truck known as the Tesla Semi and its futuristic Cybertruck.

The corporate’s shares fell 1.3% to $633.73 in premarket buying and selling.

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