Tesla to sell up to $5 billion of stock

Elon Musk wants to make the most of Tesla's eye-watering valuation. On Tuesday, the automaker announced that it would sell up to $5 billion worth of its stock over time.

Musk's electric-vehicle company has struck an equity-distribution agreement with ten banks, including Goldman Sachs, Bank of America, and Morgan Stanley. They will act as sales agents and earn a commission, or buy the shares themselves, generating up to $5 billion in aggregate sale proceeds for Tesla.

The shares will go on sale "from time to time" through an "at-the-market" or follow-on offering program. Tesla and the banks will decide how much stock is sold and at what price daily. The automaker will use the proceeds to bolster its balance sheet and fund its operations.

Tesla's stock price has skyrocketed more than 600% this year, boosting its market capitalization to the north of $600 billion as of Monday's close. The company earned about $21 billion in revenue and only $1.4 billion in operating income in the first nine months of this year.