One of Tesla’s biggest bulls said the automaker’s planned $2 billion stock offering, announced on Thursday, “makes sense” and will help propel the shares to her eye-popping $7,000 target in the next 5 years.
ARK Invest founder and CEO Cathie Wood, who has been a long-time Tesla bull, said on Twitter that the capital raise “increases our confidence that it [Tesla] will gain market share in the EV market during the next 5 years,” which increases “the probability that our bull case for the stock is correct.”
Tesla said Thursday that it will offer 2.65 million shares through underwriters Goldman Sachs and Morgan Stanley, with expected gross proceeds of $2.3 billion before discounts and expenses. CEO Elon Musk will buy up to $10 million worth of shares in the new offering.
Tesla shares have surged 80% this year in what’s been an especially volatile time for the stock, which has seen shares whipsaw between double digit gains and losses.
The announcement comes just two weeks after Musk said…