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Tesla looks to raise $5 billion by selling more of its red-hot stock

September 1, 2020. Summarized by summa-bot.

CENTURY CITY, CA - AUGUST 12: A general view of the Tesla Store at the Westfield Century City shopping mall on August 12, 2020 in Century City, California. (Photo by AaronP/Bauer-Griffin/GC Images)

Tesla's stock has already soared about 500% in 2020, prompting the company to split its share price to make it more affordable for average investors. Now it looks like Elon Musk's electric car company is hoping it can find even more investors to gobble up its stock.

New York (CNN Business)Tesla's stock has already soared about 500% in 2020, prompting the company to split its share price to make it more affordable for average investors.

Now it looks like Elon Musk's electric car company is hoping it can find even more investors to gobble up its stock.

Tesla (TSLA) announced plans Tuesday to sell up to about $5 billion in new shares.

The planned stock sale comes one day after Tesla's stock split took effect, cutting the price of each share by a fifth.

Strong investor demand for Tesla -- as well as Apple (AAPL), which also split its stock on Monday -- led to outages on Robinhood, E-Trade and other online brokerages and trading apps.

Shares of Tesla surged nearly 13% Monday but fell more than 1% Tuesday to around $490 a share.

Tesla didn't give many specific details about what it plans to do with the money from the stock sales, simply saying in its SEC filing that it intends to use the proceeds "to further strengthen our balance sheet, as well as for general corporate purposes. "

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