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Tesla Continues To Fall After Completing $5B Offering, S&P 500 Snub

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Tesla Continues To Fall After Completing $5B Offering, S&P 500 Snub

On Sept. 1, Tesla Inc (NASDAQ: TSLA) announced a $5 billion at-the-market stock offering. This gave the company the option to create and sell up to $5 billion worth of shares at a future date.

It looks like Tesla completed its offering on Friday, Sept. 4. "The final settlement of the shares sold is expected to be completed by September 9, 2020," the company said in an 8k filing.

Also on Friday evening, the S&P 500 announced three new members to the index; Tesla wasn't one of them.

"It was viewed as almost a consensus move based on all the metrics that Tesla was likely to get into the S&P 500 club this time around and thus will have a negative knee jerk investor reaction accordingly in an already white knuckle tape," Wedbush analyst Dan Ives wrote in a note.

Tesla's stock traded sharply lower in Monday's pre-market session, down 15% to $355.18 per share at the time of publication.

Related Links:

Tesla Shares Fall After Stock Was Not Added To The S&P 500

Is Tesla Pulling Off A 'Business Miracle'?

Photo courtesy of Tesla

 

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