Tesla to raise $1B
ir.tesla.com
Tesla to raise $1B
1–10 of 334 posts
Re: Tesla to raise $1B
#2Link to press release: http://ir.tesla.com/releasedetail.cfm?ReleaseID=1017594
Re: Tesla to raise $1B
#3Does anyone know the % interest rate on these? It seems to be blanked out.
How can financial markets function efficiently when such basic information is suppressed?
Re: Tesla to raise $1B
#4That went quickly from denying a capital raise to reality.
Re: Tesla to raise $1B
#5Tesla is basically taking on a loan in form of a convertible notes.
probably much smarter to distribute their lender among multiple entities than one giant bank that would have leverage on them.
Also, it looks like Tesla would use a portion of the money to inflate their share prices via a small buyback. The after market trading so far make this strategy look successful.
So at the end of a day: Tesla is raising capital without diluting their shareholders and reducing their share values and giving up much control. Also the maturity date of 5 years is rather interesting. I wonder if it correlates with their internal projections and their ability to pay that money back by then.
Re: Tesla to raise $1B
#6As an investor of Tesla who bought into Elon's vision I've been getting more and more nervous about how the company is actually run at this point.
A modern car company is as much of a production and supply chain company as it's a product and tech company. I get the feeling that due to Tesla being cutting edge in the tech department it led to all the supply chain/production problems being treated as if they are speed bumps on the way, when in reality they are fundamental core competitive areas for an automotive company. Toyota is not the world's premier automaker because they have cutting edge tech, they are what they are because they build unbelievably number of reliable cars at an unbelievable scale.
The bleeding of cash after so many promises of "not going to raise money again" just shows that their vision is way ahead of their execution ability. Decisions like the terribly executed Falcon Wing Doors on a SUV that delayed production and increased cost and hurt reliability just further gave fuel to all the doubters.
I also have a strong suspicion that Tesla has not been honest with their Auto Pilot 2 and full self driving tech's progress. The current AP2 is an unsafe joke and I have no idea how people are ok with paying $5-10k for a significant downgrade when compared to AP1 because of a non-binding promise that it "might" get upgraded before their lease term is out. Any other automakers would be laughed out of the room for suggesting this kind of sales tactics.
I still believe in Tesla/Elon's end game vision, and I think what they accomplished is nothing short of brilliant, but I think it's a very risky investment at this point and the road ahead is bumpier than many like to admit.
The upcoming Model 3 will be the acid test for Tesla. It will no doubt be a good car, but at this point people should focus less on what the car can do and on how the car will be rolled out, sold and supported afterwards. A wealthy Model S customer may be ok with having the car in the shop after a minor accident for 5 months due to lack of replacement parts, but for an average Joe paying $500/month leasing a Model 3 that would just be the birth of a new BMW customer.
Re: Tesla to raise $1B
#7Does anyone know the % interest rate on these? It seems to be blanked out. How can financial markets function efficiently when such basic information is suppressed?
The interest rate, conversion price and other terms of the notes are to be determined, according to the press release.
Re: Tesla to raise $1B
#8That went quickly from denying a capital raise to reality.
Elon said in a recent earnings call that, while they would probably be fine without a raise, they expected it would make investors more comfortable if they did a raise and thus might do one.
Re: Tesla to raise $1B
#9As an investor of Tesla who bought into Elon's vision I've been getting more and more nervous about how the company is actually run at this point. A modern car company is as much of a production and supply chain company as it's a product and tech company. I get the feeling that due to Tesla being cutting edge in the tech department it led to all the supply chain/production problems being treated as if they are speed…
You're concerned with a 23% YTD return on the stock and a 600% return over 5 years? The market has a way of signaling if a company is totally screwed up. Looks like it isn't.
Re: Tesla to raise $1B
#10As an investor of Tesla who bought into Elon's vision I've been getting more and more nervous about how the company is actually run at this point. A modern car company is as much of a production and supply chain company as it's a product and tech company. I get the feeling that due to Tesla being cutting edge in the tech department it led to all the supply chain/production problems being treated as if they are speed…
Can you explain why do you consider AP2 to be a downgrade from AP1? I thought it's everything AP1 has + more.