SpaceX has nothing to do with Tesla, yet. Except maybe that bond offering. But anyway, here is the new family car for 46+K, nobody ever will buy it for 35K, the promised price. Why? Because the car is such a bare bone at 35K, that not even Fred Flintstone would want it. 90 miles extra range? 9K. Autopilot? 5K. Full Self Drive? (doesn't even exist, but 3K) Full glass roof? Not for 35K... Another Elon promise going down the drain...
Cheap Debt > Cheap Equity at Tesla Tesla said it will borrow $1.5 billion to fund its rollout of the Model 3, in what will be its first plain-vanilla issue of tradable debt. It should get the company through the next quarter's cash commitments with a bit left over to spare. Elon Musk had flagged his intentions during last week's earnings call, but analysts questioned whether it wouldn't have been more sensible to take advantage of its sky-high share price to issue more equity. Credit spreads have tightened as economic data have weakened the case for rapid interest rate increases, making the cost of raising debt even at a modest B- rating acceptable. Fortune
Musk revs up Tesla bond buyers, raises $600M in a few hours Tesla's Elon Musk is selling his dream. Bond investors seem to be closing their eyes and buying it. Muskon Mondaycame away with orders for $600 million after just a few hours.(Automotive News)
A stock valuation site I was looking at the other day that seemed credible had instrinsic value of TSLA at 1,000.
Some credible website, eh? The reason they didn't do an equity offering is because the banks don't let them, so they had to go the junk bond way. I say SpaceX might buy a bunch of their bonds, and eventually one of the big ones Apple, Google buy them out when they drop below $100...
TSLA is a steal down here at $358 About 2 million shorts piled on today. Watch it rocket to $368 into the close
Those shorts are idiots, they should use options. Then time works for them. I posted an IC on Tesla $350 being the middle, it was up 50% a week ago...