Photo Illustration: Sarah Grillo/Axios. Photo: Jörg Carstensen/picture alliance via Getty Images

Tesla raised $2.03 billion in a secondary stock offering, pricing at $767 per share. That's a 4.6% discount to yesterday's closing price, and an 86.2% premium to where CEO Elon Musk infamously tweeted that he had "funding secured."

Why it matters: Momentum floats apparently are a thing now, as this comes just two weeks after Musk said on an earnings call that "it doesn’t make sense to raise money because we expect to generate cash."

The backdrop: This time last year, Tesla was struggling with cashflow issues and suffering waves of layoffs. And, investors weren't particularly happy with its reluctance to spend money.

  • Tesla bulls (who, after all, represent the overwhelming majority of the company's only shareholders) saw a fast-growing technology company investing heavily in new automobiles, factories and batteries. In other words, they saw a company with significant opportunities to turn fresh cash into future profits, and they wanted CEO Elon Musk to grasp those opportunities.
  • The bull case for Tesla is explicitly predicated on the company raising billions of dollars in fresh equity capital.

The bottom line: "Tesla stock has been in Ludicrous Mode. Given its bonkers gyrations, it's now easy to see why Musk might feel that he was right all along in wanting to take the company private back in 2018, writes Axios' Felix Salmon.

  • The recent surge in Tesla's share price can be viewed as the stock market positively begging Musk to raise fresh cash while it's incredibly cheap. While he claims not to need the money, investors are sure that he'll find something worthwhile to do with it.

Go deeper

Supreme Court won't block Rhode Island's eased absentee voting rules

Photo: Robert Nickelsberg/Getty Images

The Supreme Court said Thursday that it will not block Rhode Island's move to ease its requirements for absentee voting during November's election.

Why it matters: The decision is a loss for Republicans, who had requested an emergency order as the state is expected to begin mailing out its ballots.

Breaking down Uber and Lyft's threat to suspend services in California

Illustration: Lazaro Gamio/Axios

Uber and Lyft are ratcheting up the fight with California’s state government over the classification of drivers with a move that would deprive Californians of their ride-hailing services (and halt driver income).

Driving the news: On Wednesday, both companies said that if a court doesn’t overturn or further pause a new ruling forcing them to reclassify California drivers as employees, they’ll suspend their services in the state until November’s election, when voters could potentially exempt them by passing a ballot measure.

Trump announces normalization of ties between Israel and UAE

Israel Prime Minister Netanyahu, Trump and UAE Crown Prince Mohammed bin Zayed. Photo: Artur Widak/NurPhoto; Samuel Corum; Odd Andersen/AFP via Getty Images

President Trump announced a "historic" deal Thursday which will see Israel and the UAE open full diplomatic relations and Israel suspend its annexation plans in the West Bank.

Why it matters: This is a major breakthrough for Israel, which lacks diplomatic recognition in many Middle Eastern countries but has been steadily improving relations in the Gulf, largely due to mutual antipathy toward Iran.