For the third time this year, Elon Musk is selling new shares in Tesla to raise cash. It’s a smart move by Musk, given how much money is flowing into the stock market. And it raises the question of why other growth companies that need cash, like Netflix, haven’t taken the same approach.
Tesla said today it would sell up to $5 billion in new shares, just three months after it raised the same amount in a similar way. In February it raised $2.3 billion in another stock offering. None of this has dampened the appetite of investors: Tesla stock has soared 656% since the start of this year, after adjusting the price for a 5-for-1 stock split in August.