Wedbush Securities’ Dan Ives praised Tesla’s announcement on Thursday morning of a brand new $2 billion widespread inventory providing.
“It is a sensible, strategic transfer,” Ives stated on “Squawk Field.” “It takes any doomsday state of affairs round money crunch … off the desk.”
Shares of Tesla, which have skyrocketed not too long ago, have been underneath some strain on Thursday after the corporate stated before-the-bell that it is planning a $2 billion widespread inventory providing. It comes simply two weeks after CEO Elon Musk stated Tesla wouldn’t increase extra capital.
Musk is about to purchase as a lot as $10 million of inventory on this providing, whereas Tesla board member Larry Ellison will even buy as much as $1 million. The corporate will provide 2.65 million Tesla shares by way of underwriters Goldman Sachs and Morgan Stanley.
Tesla stated it plans “to additional strengthen its stability sheet” with the providing’s proceeds. “It is actually concerning the money crunch. Now they’ve solidified the stability sheet by deliveries going up into the suitable,” Ives stated.
Ives has a…