Tesla shares drop after automaker announces $2B stock sale

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2020 Tesla model x, r m

FILE – In this Feb. 2, 2020, file photo, the company logo shines on the grille of an unsold 2020 Model X at a Tesla dealership in Littleton, Colo. Tesla is now worth more than General Motors, Ford and Fiat Chrysler combined, even though the Big Three together sell more cars and trucks in two weeks than Tesla does in a whole year. (AP Photo/David Zalubowski, File)

DETROIT (AP) — Shares of Tesla Inc. fell just over 4% in early trading Thursday after the electric vehicle and solar panel maker announced it would sell more than $2 billion worth of additional shares.

The move comes just two weeks after CEO Elon Musk said the company had enough cash to fund its capital programs and it didn’t need to raise any more money.

Tesla says in a statement that underwriters of the share sale have a 30-day option to buy another $300 million in common stock.

In the statement, Tesla says Musk will buy $10 million worth of the stock while billionaire board member and Oracle co-founder Larry Ellison will buy shares worth $1 million.

The Palo Alto, California-based company will use the proceeds to strengthen its balance sheet and for general corporate purposes.

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Basketball Madness Contest Canceled

On March 12, 2020, the NCAA canceled its 2020 Men’s Basketball Tournament.  Consequently, and as provided for in the Station’s Basketball Madness Official Rules and due to circumstances beyond the control of the Station (and Nexstar Media Group, Inc.), both the national and local market Basketball Madness Bracket Challenge contests have been canceled. No new entries will be accepted and any previously submitted entries will be deleted within five (5) business days.