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CuriousSunbird: Tesla must raise capital

Discussion in 'TSLA Investor Discussions' started by CuriousSunbird, Apr 26, 2018.

  1. ggr

    ggr Expert in Dunning-Kruger Effect!

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    From that article:
    I can't check this one because I won't pay the Rupert Rag to read it.

    From that article:
    See above. Oh, and three quarters later, Tesla actually was cash flow positive.

    From that article:
    And you've conveniently forgotten that after the Model 3 launch, and 400,000 deposits, they said that they're going to spend money to bring the Model 3 volume forward.

    Yes, before they knew that the Model 3 ramp was delayed. He since said it was behind by 2-3 quarters, which would be Q3 2018. "Forward looking statements".



     
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  2. defc0n

    defc0n Active Member

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    This assumption is what separates bears vs bulls, and will ultimately prove who is right or wrong I believe. Q1 will be close to 1 billion. Q2 might be about half a billion. What happens after that will be fun to watch.
     
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  3. Uncle Paul

    Uncle Paul Well-Known Member

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    Tesla is a pretty smart company. A couple times in the past the decided to raise money, not because they had to, but because the terms they could get made the timing right and the funding very inexpensive.

    If money is cheap, companies often borrow to build a buffer against unexpected expenses.

    These funds can also be used to accelerate production or operate more efficiently.

    In other words, while Tesla may not need to raise money, they may choose to raise money.
     
    • Like x 1
  4. dmode

    dmode Member

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    I am not an active investor, but I am always curious about the endless discussion abiut Tesla's need to raise money. They may or they may not. Either way I don't see a problem. If a company like Uber, with 0.5 billion loss every quarter can raise $10bn from SoftBank, I don't see how a company with 400,000 pre-orders will ever have liquidity issues, especially if capital requirements are "merely" in 1-2bn range. SoftBank alone has a $100bn fund. On top of that Asian and Middle Eastern investors are looking to diversify their billions. There is currently bottomless liquidity in the market
     
  5. schonelucht

    schonelucht Well-Known Member

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    Yes. This the crux of the argument. And it all comes down to Tesla hitting volume and margins on the M3. There are reasonable arguments to make both ways on those goals.
     
  6. CuriousSunbird

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    Because if the share price is over $360 in Feb they can repay the $900 million convertible in shares instead of in cash. Don't you people even read the financial reports?
     
  7. CuriousSunbird

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    You have liquidity problems when your working capital is negative $1 billion, when your free cashflow is negative and when you have committed more than $30 billion in payments over the next few years.
     

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