Tesla unveiled a $5 billion capital raise on Tuesday, its second such move in three months as the electric-car maker cashes in on a meteoric rally in its shares this year.
The additional shares will be sold “from time to time” and “at-the-market” prices, Tesla said in a filing with the Securities and Exchange Commission. The filing said banks will sell shares based on directives from Tesla.
Tesla’s market cap is currently at $598 billion, meaning the new offering represents less than 1% of the company’s value.
The new capital raise comes at an important time for Tesla, which is in the process of building new factories in Germany and Texas.
Wedbush analyst Dan Ives said in a note Tuesday the capital raise is a “clear positive and further solidifies” the bull case for Tesla.
The company’s shares, which touched a record high on Monday, reversed course to fall over 2% in premarket trading. Shares of the automaker are up roughly 670% this year. That includes a 5-for-1 stock split in August.