Tesla to raise another $5bn by selling shares

Electric carmaker to join blue-chip S&P 500 index as its stock price continues to soar

Tesla is to raise up to $5bn selling new shares, as the electric carmaker takes advantage of an almost 900% surge in its share price over the last 12 months.

The move comes three months after Tesla last moved to raise $5bn, at the time its biggest issue of new stock in a decade, and just weeks before the company is due to enter the blue-chip S&P 500 index. Entry to the benchmark index is likely to further fuel Tesla's stock market run as passive investors that track the S&P 500 will be compelled to buy shares in the business.