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Short-Term TSLA Price Movements - 2014

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Anyone have any guesses on how much capital Elon would want to raise?

If he wanted to raise 1 Billion he would only need to sell 4.5mm shares at $220.

4.5mm shares is only 3.7% of the current Shares Outstanding which doesnt sound too bad in terms of dilution.

Is my logic correct?

Yes correct. My guesstimate would be 8-10 million shares $~250 for 2 Billion and change.
 
Because my portfolio was small I only exclusively trade options. I've gone from a $30k investment to $42 pre-Q3 to $18k post-Q3 to $90k today purely on options. After the ER I bought 5 shares of TSLA to be able to call myself a Tesla investor with a clean conscience. Options do work and are extremely nice with small portfolio, but they also are an easy way to lose a lot of money :)
 

Beat me to it. If Panasonic and suppliers will be investing $1bn, then TSLA will need to raise much less.

This was also interesting
"The U.S. plant, which will handle everything from processing raw materials to assembly, will produce small, lightweight batteries for Tesla and may also supply Toyota Motor Corp and other automakers, the Nikkei said."

I don't know if that's referring to what Tesla already is doing for Toyota's RAV 4EV or if it means more than that. Toyota is going the hydrogen route so maybe not.
 

Isn't this the first time we have confirmation that 1) Panasonic is a partner -- though obvious and 2) it is $1B?

- - - Updated - - -

Beat me to it. If Panasonic and suppliers will be investing $1bn, then TSLA will need to raise much less.

Interesting, less than $1B. After today ppl might say "take $2B".
 
For those of you looking into dilutive effects of funding the gigafactory, remember the high-powered nature of issuing convertible preferred stock. This is exactly what Tesla did last summer - costing existing shareholders virtually nothing and also costing TMInc. 3/8 of 5/6 of spit-all in terms of interest payments.
 
Jim Cramer was just on Closing Bell making some sense of it. He likes Tesla as a company (and Netflix too) but, is getting wary of what he called "the attack of the price targets" and likened it to the $1,000 price target on Qualcomm back in December 1999. He made a recommendation to take some money off the table and play with 'house money' if you are not already doing that; and, to reinvest in a company that's more at 16-17x PE.

I'm no fan of Cramer but, all this made some sense to me. I took some good profits at $254 today; sorry for feeding the shorties a bit :)
 
For those of you looking into dilutive effects of funding the gigafactory, remember the high-powered nature of issuing convertible preferred stock. This is exactly what Tesla did last summer - costing existing shareholders virtually nothing and also costing TMInc. 3/8 of 5/6 of spit-all in terms of interest payments.

I'm not an expert on this stuff, but I think last time they were able to find institutional investors willing to accept the $120 price. And then there was that whole $160 for X amount of days thing that was discussed on here.

To do something like that again, don't they have to find institutions willing to pay todays price of well over $200? If so, will they be able to do that or instead of doing that, will they just release shares in the market? Anyone have info on how that would work?
 
I'm not an expert on this stuff, but I think last time they were able to find institutional investors willing to accept the $120 price. And then there was that whole $160 for X amount of days thing that was discussed on here.

To do something like that again, don't they have to find institutions willing to pay todays price of well over $200? If so, will they be able to do that or instead of doing that, will they just release shares in the market? Anyone have info on how that would work?
I wouldn't be at all surprised, after today, to see the secondary priced at $280. And fully subscribed, quickly, at that price.
 

Reading that it almost feels like Panasonic has a deadline of this week to help finance the factory or Tesla will do it without them.

P.S. I've been following the forum regularly and finally decided to join in. I've been covering Tesla for a while at SA - http://seekingalpha.com/author/siddharth-dalal/articles/symbol/tsla - I know a lot of you are not fans of a lot of SA coverage.
 
Just a minor correction to justdoit and Benz: IIRC, the institutional investment of last May was at that day's price, approx $92, and today's close was, where I look, at $248.0 sharp. Not that it matters at all to your arguments, but to set the record straight.
 
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