Alec Hogg: Tesla may be ringing market’s bell

Just weeks before the 1987 stock market crash, then small UK property business Capital & Counties conducted one of the largest rights issues London had ever seen. Its shrewd chairman, South African business icon Donald Gordon, saw an overheated stock market as a source of very cheap funding. His prescience set up Capco for decades of well capitalised growth.

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Another maverick entrepreneur, Tesla founder Elon Musk, is taking a leaf out of his late compatriot's book. Yesterday Tesla disclosed in a regulatory filing to the US Securities and Exchange Commission it will be raising another $5bn. Ten of the world's top banks, led by Goldman Sachs and Citigroup, will be selling these Tesla shares into the market to satisfy the seemingly endless investor demand.

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