googlepeakoil
Member
One of the interesting things that keeps my confidence in my TSLA is the institutions (no matter how much they downgrade) ALWAYS want Tesla to borrow money from them or do an equity raise. That tells me the institutions don't see Tesla going bankrupt and probably believe the company has a better than not chance of doing well.
And of course the price has to get under $143 before I get the slightest bit of worried.
Is this not because the banks earn about 5-10% in commission on each share raise? So $100m on a $2bn new share issue, and sometimes these are shared between a few investment banks, a lead and a 2nd or more. They also get first dibs on buying the new shares which may be offered at a discount to the retail price. Don't know if they have lock-ins.