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US electric car manufacturer shops for $5bn funds, targets expansion

By News Desk,

An electric vehicle manufacturer, Tesla Incorporation, in United State has opened its organisational structure to potential investors by offering its shares on the country’s stock exchange market to ease future debt pressures.

The decision to open up its organisation structure was to afford the automaker raise $5billion through shares with the aim of increasing its annual car production through construction of new factories in Germany and in Texas, USA.

As gathered, the company also plans to launch new lines of vehicles, including a semi-truck called the Tesla Semi and its futuristic Cybertruck.

Before the $5 billion plan, Tesla had announced a 5-for-1 split share to portion its richly valued stock into smaller packages, making it less expensive in a bid to allow for smaller investors to become joint owners of the company.

The electric car marker yesterday announced ten major banks that include Goldman Sachs & Co. LLC, Bank of America Securities, Barclays Capital Inc., Citigroup Global Markets Inc., and others as sales agents.

Shares of aggregate sales proceed of up to $5.0 billion were excepted to be sold by the ten banks on behalf of Tesla from time to time, through an at-the-market offering program.

“Upon delivery of a placement notice and subject to the terms and conditions of the Equity Distribution Agreement, the Sales Agents will use reasonable efforts consistent with their normal trading and sales practices”, the shares filing stated.

Tesla shares were reported to have risen about 8 percent in early pre-market trading, were up about 3% after the news, while the company’s stock has soared over 70 percent since its split was announced on earlier in August and was trading at over $2,000 on Friday on a split-adjusted basis.

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