Tesla, looking to cut 'risks,' will raise $1B in capital Tesla Inc. plans to offer $250 million in shares and $750 million in convertible debt as the electric-car maker looks to raise the cash needed to evolve from a niche player to a high-volume automaker. The proceeds will be used to strengthen its balance sheet and "further reduce any risks associated with the rapid scaling of its business due to the launch of Model 3," Tesla said in a statement. (Automotive News)
Believe me I struggle when I try to be rational about trading on irrational markets. Reminds me of today's politics. I have to remember myself that the market trades on perception, not rationale.
If snapchat is valued 24 billion,how can tsla not be at least 100 billion. No competition whatsoever, a tech company into solar batter is into future. Solar electric,and battery. Iphone on wheels. Vision to supply power to entire world. And just valued under 40 billion.
Tesla Inc said on Friday it had raised about $1.2 billion, roughly 20 percent more than it had planned, by selling common shares and convertible debt, ahead of the launch of the crucial Model 3 sedan. The company, led by Elon Musk, said it sold 1.3 million common shares at $262 apiece to raise $350 million and that it raised another $850 million though the sale of convertible senior notes due 2022. (bit.ly/2n5Bf8C) The electric car company said on Wednesday it planned to sell $250 million worth of stock and $750 million in notes. Tesla had been expected to raise capital since late last year, with the expectations gaining steam last month after Musk said the company could be "close to the edge" on cash needs. Musk had Tesla was considering a number of options, including raising capital, to reduce risk ahead of the upcoming Model 3 sedan, the $35,000 mass-market vehicle on which the company's future profitability hinges. Tesla said Musk, already the company's top shareholder with a stake of about 21 percent as of December, bought 95,420 common shares for $25 million in the latest stock sale. The 1.3 million shares sold represents about 0.8 percent of Tesla's outstanding shares as of Dec. 31. Tesla's shares were up 0.3 percent at $262.71 in premarket trading on Friday. http://www.reuters.com/article/tesla-offering-idUSL3N1GU3T5
First you can compare to one ponzi to another one, but you still not going to get what you want, a true evaluation. In plain English, just because Snapchat is shit that doesn't mean Tesla is not bull manure. Second, no competition? Chevy has just came out with Bolt and basically every automaker has a EV in their pipeline. Not to mention for the price of M3 you can buy 2 Bolts, not as cool as the M3, but if you care about enviroment and shit, you might care less about look. Third, the capital raise was too little. They needed at least 2 billion or even more, but they simply couldn't get more than a little over 1, so they will run out of money again and soon. There is a conundrum with making the M3. The more they make the more they are going to lose on it, and if they are making too little (under 100K per year) they lose money period, because there is a minimum number with low margin carmaking where the new production line just doesn't play off.