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The "junk bond" rating and high debt load makes me a little nervous, but maybe that's irrelevant and this is just them raising money as an accelerant because they can get it at a good price?
"The company burned through $1.16 billion in cash in the second quarter [...] a little more than $3 billion in cash on hand"
https://www.bloomberg.com/news/articles/2017-08-02/tesla-bur...
How much of this is actually being used to pay down SolarCity debt?
You can't pay debt with debt. They may be getting better interest rates on the bond market to refinance their existing loans but total liabilities are going up, not down.
What is the new goal to 2020? 2 years[0] ago they were expecting delivery 500,000 cars in 2020. If they will do that this year, maybe their new goal is to finally put a foot in the top 20 group of world manufacturers[1]?
[0]http://www.businessinsider.com/everything-tesla-promises-to-... [1]https://en.wikipedia.org/wiki/List_of_manufacturers_by_motor...
It's heartening to see financial markets helping a company with such potential for positive externalities. Sometimes maybe the system does work!
It's heartening to see financial markets helping a company with such potential for positive externalities. Sometimes maybe the system does work!
Earlier quoted context omitted.
You can't pay debt with debt. They may be getting better interest rates on the bond market to refinance their existing loans but total liabilities are going up, not down.
Sure you can. That's the exact definition of "refinancing".