Tesla completed stock offering, which helped trigger last week’s selloff

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Tesla Inc. disclosed Tuesday that the $5.0 billion stock offering announced last week was completed on Sept. 4. The electric vehicle maker said the final settlement of the offering is expected to be completed on Sept. 9. Since closing at a record $498.32 last Monday, Tesla announced the stock offering on Sept. 1, helping trigger a selloff, in which the stock closed Friday 16.1% below Monday’s record. On Tuesday, the stock tumbled 10.8% in premarket trading, after investors were surprised by S&P Dow Jones Indices announcement late Friday its new S&P 500 index components didn’t include Tesla, as was widely expected. “Unclear why [Tesla] was not included in the recent rebalancing cycle, though we do think the stock will be eventually added to the S&P 500, having fulfilled all inclusion criteria,” Baird analyst Ben Kallo wrote in a note to clients. The stock has still soared 400% year to date through Friday, while the S&P 500 has tacked on 6.1%.
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