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Tesla to raise $1B

ir.tesla.com

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Re: Tesla to raise $1B

#21

Post by Cookingboy »

baq wrote: post #11
Cookingboy wrote: post #6

As 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…

the one problem with your post is that you think it's still a car company.

Well judging by the percentage of their revenue from cars at this point they are undeniably a car company.

Vision statements are predictive instead of descriptive.

Apple can have a vision of building cars in the future but it doesn't change the fact that they are a consumer electronics company today.

Vision is cheap, execution is where the money is at.

Re: Tesla to raise $1B

#22

Post by brianpgordon »

salimmadjd wrote: post #5

Tesla 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 capita…

> So at the end of a day: Tesla is raising capital without diluting their shareholders

They're also offering at least $250 million in common stock as part of this round. And the notes are convertible so if it becomes profitable to convert them those will result in dilution as well.

Re: Tesla to raise $1B

#23

Post by FireBeyond »

revelation wrote: post #12
Cookingboy wrote: post #6

As 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…

AP2 is truly dangerous. It's incomprehensible they would release something like this: https://www.youtube.com/watch?v=UZ1XLqc5IUg I guess it's a good reality check for autonomous cars when you take away the LIDAR toys. One rather important point is that the car often doesn't realize it is screwing up, because quelle surprise, realizing you don't have a correctly detected lane can be just as difficult as detecting one…

Wow. That is a trainwreck. Or car wreck.

How much value are they expecting to get from riding the "Beta" train? There's a huge difference between their self-congratulatory demos of features and the reality here.

Oh, and you have to pay for this.

Re: Tesla to raise $1B

#24

Post by salimmadjd »

jeffwass wrote: post #16
salimmadjd wrote: post #5

Tesla 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 capita…

You've contradicted yourself in the two quotes below. "Tesla is basically taking on a loan in form of a convertible notes." "So at the end of a day: Tesla is raising capital without diluting their shareholders and reducing their share values" Convertible debt is in fact dilutive. It's even specifically accounted for when calculating Diluted Earnings per Share : http://www.investopedia.com/terms/d/dilutedeps.asp

But you're not flooding the market with $750M new common stock of TSLA in the market. If TSLA price crashes it could impact consumer confidence in buying the T3 which Tesla is banking on.

If TSLA drops and T3 are delayed, many consumers might panic and not oder their car creating a vicious circle.

Re: Tesla to raise $1B

#26

Post by cel1ne »

Cookingboy wrote: post #6

As 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…

Curious: What do you think is Tesla/Musk's "end game vision"?

Re: Tesla to raise $1B

#27

Post by [deleted] »

corbett3000 wrote: post #9
Cookingboy wrote: post #6

As 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.

[deleted]

Re: Tesla to raise $1B

#28

Post by ganonm »

Cookingboy wrote: post #14
corbett3000 wrote: post #9

Earlier quoted context omitted.

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.

Well the market can be terribly wrong on many companies in the long run, both undervaluing great companies and overvaluing terrible companies. Tesla's vision is for the next 20 years, not the last 5. Historical performance is also not an indicator of future performance. Everyday I'm holding onto the shares is the same as if I made the decision to buy that many shares on that day. If anything the fantastic return woul…

> Everyday I'm holding onto the shares is the same as if I made the decision to buy that many shares on that day

This is a great way to think about holding investments. I remember using this argument to try and convince a family member that they should sell what I considered to be a bad investment. I phrased it as 'If you were forced to sell your shares right now would you use the money from the sale to immediately buy back your shares?'. He responded that no, he wouldn't. Obviously this ignores brokerage fees, but it is a useful thought experiment nonetheless.

Re: Tesla to raise $1B

#29

Post by ClassyJacket »

comboy wrote: post #10
Cookingboy wrote: post #6

As 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.

It will, but it doesn't yet.

Cars with the second generation autopilot hardware were sold without any autopilot at all. It also had no auto park, no automatic headlights, no automatic wipers, no automatic emergency braking, no side collision warning, no lane departure warning, no automatic lane change, or summon.

A 45Mph speed limited version of autosteer was enabled in an update, and maybe some of those other features. I sadly do not actually own one myself to know.

Re: Tesla to raise $1B

#30

Post by orb_yt »

Cookingboy wrote: post #21
baq wrote: post #11

Earlier quoted context omitted.

the one problem with your post is that you think it's still a car company.

Well judging by the percentage of their revenue from cars at this point they are undeniably a car company. Vision statements are predictive instead of descriptive. Apple can have a vision of building cars in the future but it doesn't change the fact that they are a consumer electronics company today . Vision is cheap, execution is where the money is at.

Please correct me if i'm wrong, but I think the comment was suggesting more than the fact that Tesla, in the literal sense, sells more than cars. I think it's also important to note the company itself supposedly operates much differently than a traditional car company, and in fact much like a software company.
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