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[Poll] Will Tesla need to raise money via debt or equity in 2018?

Discussion in 'TSLA Investor Discussions' started by FirebirdAlpha, Jul 9, 2018.

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[Poll] Will Tesla raise money via debt or equity in 2018?

  1. Yes, probably through debt

    3 vote(s)
    8.3%
  2. Yes, probably through equity

    2 vote(s)
    5.6%
  3. Yes, but I'm not sure which

    5 vote(s)
    13.9%
  4. No

    26 vote(s)
    72.2%
  1. FirebirdAlpha

    FirebirdAlpha Member

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    Simple poll to see what people think.
     
  2. Unicorn3

    Unicorn3 Member

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    No need!
     
    • Like x 1
  3. Esme Es Mejor

    Esme Es Mejor Member

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    Why not just buy Ford?
     
    • Funny x 1
  4. neroden

    neroden Model S Owner and Frustrated Tesla Fan

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    No way. Anyone who can do math and read a balance sheet knows the answer is "no". Even if the next two quarters are as capex-heavy as Q1 and operating profits don't increase at all over Q1 -- neither of which is likely.

    Now, if you asked whether they'd need to raise money in *2019*, that would be a much more interesting question. But you asked about *2018*.
     
    • Like x 3
  5. schonelucht

    schonelucht Active Member

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    Opportunistic raise is always a possibility.
     
  6. ValueAnalyst

    ValueAnalyst Closed

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    Pretty much anything is always a possibility, but the poll question asked "will?"
     
    • Like x 2
  7. Esme Es Mejor

    Esme Es Mejor Member

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    Seriously, why not buy Ford? Based on how the market is valuing the two companies, it clearly believes Ford’s assets would be better used in the hands of Tesla’s management.

    $18B in cash. Lots of capacity to build trucks & SUVs, markets Tesla will soon be moving into, and in which ICE vehicles will soon be economically unviable. Large workforce with no economic future in building ICE vehicles, but many could be useful building EVs.

    Downsides. I believe Ford family has enough controlling interest that it would have to be a friendly acquisition. The financing arm could be a disaster in a recession— this would require a lot of due diligence and be a potential dealbreaker. Legacy costs of a unionized workforce could be a dealbreaker as well.
     
  8. Reality

    Reality Member

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    Apr 11, 2018
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    I agree with this, but you could also argue that in order to meet 2019-2020 goals for semi and Y, they need to raise now (raising takes time).


    With that said in the strictest sense they dont 'need' to raise in 2018
     
    • Like x 1
  9. electracity

    electracity Active Member

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    Like most people I voted 'no'.

    I think the much bigger question is how Tesla can change conditions so that periodically raising money is reliably doable.

    A major part of the problem is that the SP had too much future priced into it as the model 3 rolled out. A lower SP rising as model 3 production is proven would be a healthier environment.

    Musk leaves no room for pleasant surprises. Jobs/Apple carefully crafted a very different environment of expectations.
     
    • Like x 2

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