Hey, everybody Rob Maower here. A little bit earlier in the day than normal. We have some breaking news to cover.

As we talked about yesterday, it might be a good time

for Tesla to raise capital and, well, they have gone ahead and submitted to do an at-the-market raise for up to

five billion dollars. So they have not actually raised this capital yet.

You're going to see that reported in a lot of places and it is likely that

Tesla is going to go ahead and raise that full five billion dollars but they have

not yet. This filing just shows that they have entered into an equity distribution agreement that would allow that to happen.

So Tesla has again partnered with the same 10 banks that they partnered with to do their at the market offering back in early September as quote

our sales agents under which we may offer and sell from time to time our common stock having

an aggregate offering price of up to five billion. The sales agents may act as agents on our

behalf or purchase shares from our common stock as principal."

So basically how this works from here is that Tesla each day can set a different

minimum price and maximum number of shares that these different banks may sell and the banks

can offer them on the market or they can sell them in private sales.

Basically as long as they're selling them at that minimum price or above they can do

whatever they want with these shares and then obviously the proceeds then go to Tesla

for these newly created shares.

So this is a dilutionary event, but obviously that dilution comes in exchange for the cash that

Tesla is generating off of the sale of these new shares. That cash will then be available for

Tesla to use for whatever they want, they can pay off debt, they can accelerate new projects

if the capital allows them to do that. They've said in the past that they're spending cash as fast as they

possibly can.

...