Question
Telsa Inc., on May 2, announced that it plans to raise capital through a bond and stock sale after it reported weak first-quarter earnings that
Telsa Inc., on May 2, announced that it plans to raise capital through a bond and stock sale after it reported weak first-quarter earnings that heightened concerns about its dwindling reserve of cash.
The electric-car maker plans to offer investors 2.72 million shares of stock, which would raise about $650 million, and $1.35 billion of debt securities that can convert to stock at a later date, according to a regulatory filing. The plan could raise as much as $2.3 billion if demand is great enough for the banks underwriting it to sell additional stock and bonds.
Tesla shares, which have been under pressure, rose on Thursday (5/2) as investors said they welcomed the fresh injection of capital. Fidelity Investments, T. Rowe Price Group, and other fund managers have sold millions of shares in 2019 amid concerns about the firms finances and performance.
How did Tesla stock react on Thursday to its announcement that it was looking to raise as much as $2.3 billion through a bond and stock sale? Why was this response "unusual"? Why do you think Tesla shares reacted this way? Tesla has $10.3 billion in debt, with $1.92 billion maturing this year and next. Is this too much? Why or why not? Please discuss.
2. Telsa Inc., on May 2, announced that it plans to raise capital through a bond and stock sale after it reported weak first-quarter earnings that heightened concerns about its dwindling reserve of cash. The electric-car maker plans to offer investors 2.72 million shares of stock, which would raise about $650 million, and S1.35 billion of debt securities that can convert to stock at a later date, according to a regulatory filing. The plan could raise as much as $2.3 billion if demand is great enough for the banks underwriting it to sell additional stock and bonds. Tesla shares, which have been under pressure, rose on Thursday (S/2) as investors said they welcomed the fresh injection of capital. Fidelity Investments, T. Rowe Price Group, and other fund managers have sold millions of shares in 2019 amid concerms about the firm's finances and performance. How did Tesla stock react on Thursday to its announcement that it was looking to raise as much as $2.3 billion through a bond and stock sale? Why was this response "unusual"? Why do you think Tesla shares reacted this way? Tesla has S10.3 billion in debt, with SI.92 billion maturing this year and next. Is this too much? Why or why not? Please discuss 2. Telsa Inc., on May 2, announced that it plans to raise capital through a bond and stock sale after it reported weak first-quarter earnings that heightened concerns about its dwindling reserve of cash. The electric-car maker plans to offer investors 2.72 million shares of stock, which would raise about $650 million, and S1.35 billion of debt securities that can convert to stock at a later date, according to a regulatory filing. The plan could raise as much as $2.3 billion if demand is great enough for the banks underwriting it to sell additional stock and bonds. Tesla shares, which have been under pressure, rose on Thursday (S/2) as investors said they welcomed the fresh injection of capital. Fidelity Investments, T. Rowe Price Group, and other fund managers have sold millions of shares in 2019 amid concerms about the firm's finances and performance. How did Tesla stock react on Thursday to its announcement that it was looking to raise as much as $2.3 billion through a bond and stock sale? Why was this response "unusual"? Why do you think Tesla shares reacted this way? Tesla has S10.3 billion in debt, with SI.92 billion maturing this year and next. Is this too much? Why or why not? Please discussStep by Step Solution
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