9/1, 1:49 PM (Source: TeleTrader)
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Tesla enters $5B stock sale deal with major banks

Tesla Inc. entered on Tuesday an equity distribution agreement with major investment banks worldwide, establishing a feature for the agent banks to sell the company's common stocks "from time to time through an 'at-the-market' offering program." The total amount of shares being offered is valued at $5 billion.

"The Sales Agents will use reasonable efforts consistent with their normal trading and sales practices, applicable state and federal laws, rules and regulations, and the rules of the Nasdaq Global Select Market to sell the Shares from time to time based upon Tesla's instructions for the sales," a document filed with the United States Securities and Exchange Commission showed.

The banks will be able to sell Tesla's shares using any method permitted by law, and will receive a commission of up to 0.50% of the aggregate gross proceeds from each sale. Following the news, Tesla's stocks jumped 3% in the premarket trade.

Breaking the News / ND