As of right now the Model E is still sort of a pipe dream to many. The giga-factory is really the only missing part to making that dream a reality though. When the giga-factory becomes "real", so does the Model E and the start of Tesla completely changing the automotive world as we know it. I wouldn't be surprised if we see the stock make its way to the previous ATHs again with anticipation of Elon releasing more details in the Q4 call. Some consolidation would make me feel a lot more confident holding through earnings though.
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Krugerrand
Meow
I'd be surprised if they did do a secondary. I'm expecting a 'creative' partnership and plan.
Agree, other than Panasonic, Samsung, and LG...the possible partners I see are Google, Solar City, Goldman Sachs, Mecedes...anyone else have any other potential partners they can think of?
Toyota. When their fuel cells fail to pan out, they'll need Tesla to fill the void. They've enough money to play both sides.
Chrisr400cc
Member
Do you know what percentage Steve Jurveston owns of Tesla? Seems like he would own a lot if he was the first Model S owner.
Maybe some utility co's that have spare cash... I would assume they can benefit nicely from mass EV adoption.
bonnie
I play a nice person on twitter.
He was the first Model S owner because he wrote a check and put it on the table before Elon Musk did ... props to Steve, but doubt he'll ever get the chance to one up Elon again.
The last two offerings sent share price up, not down...
Short-Term TSLA Price Movements - 2013 - Page 191
Difference is Giga Factory would require much more funding, but I would not be generally pessimistic when thinking about another secondary.
MartinAustin
Active Member
I'm guessing some new piece of information has come out, causing TSLA to jump by five dollars in one hour. Wonder what it is?
InTheShadows
Active Member
Hehe, man, I can't believe I forgot about that. It's hard to predict how an offering is perceived by the market. I think it's rare for the price to go up when a dilution is announced.
Only if investors think that management won't deploy that new capital profitably. When people see a Tesla secondary, they hear Elon Musk saying, "OK, I've figured out more ways to make you rich." There aren't many people on the planet who I'd give money to if they said that, but Elon is one.
A secondary offering can also be viewed as good news if it increases the float (# of shares available on the market). That increases liquidity, decreases volatility and makes it easier for more mutual funds to buy into the stock.
I think my previous company was required to do a secondary offering to increase the float when it joined the S&P500. Net value to the stock was positive
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I think my previous company was required to do a secondary offering to increase the float when it joined the S&P500. Net value to the stock was positive
.Would this be a way to get money for the Giga Factory?
Green Vehicle Loan Program May Be Extended to Suppliers - Bloomberg
Also, the government official quoted was speaking from the Washington Auto Show (starting tomorrow) - wasn´t there news somewhere that Tesla had set up a temporary Supercharger near Washington? Tesla isn´t listed on the exhibitors page though.
A secondary offering can also be viewed as good news if it increases the float (# of shares available on the market). That increases liquidity, decreases volatility and makes it easier for more mutual funds to buy into the stock.
I think my previous company was required to do a secondary offering to increase the float when it joined the S&P500. Net value to the stock was positive
Increase in float has an inverse correlation to share price, assuming you hold everything else constant. Increase in float = increase in supply of share. If you hold demand constant, then the increase in share supply will cause the stock to go down.
If you don't believe me then watch what will happen to TWTR end of April, first half of May as the lockup expiration gets ready to hit on May 15, which will increase float by a lot (and all other things will be held constant). Big TWTR crash coming by May for sure.
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