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jhm
Well-Known Member
I'll take Musk's comment about generating free cash flow in 2015Q3 as support for my conjecture that there will be no addition capital raise for the Gigafactory. Actually the Gigafactory will be quite cash flow negative at that point as the roll out will take 3 or 4 years, but apparently auto sales will carry the day. Also it looks like Tesla will pitch in about 60%, Panasonic 30%, and other partners 10%. Tesla has about $2.3B on hand, so it only needs an additional $700M from cash flow. It looks like we'll see this bird clear the runway in about a year.
A company of Tesla's size and considering huge spending across the board in infrastructure and service centers and stores, I believe Tesla won't like to be thinly funded in the years coming into the launch of GF. I expect another round of secondary at the end of 2015 to add cushion against natural or undesired causes.
MartinAustin
Active Member
I think Elon's comment that the Model X is sold out for 2015 will partly go to stem demand... which is what he has said they want to do. (or, rather, to not do anything to increase demand.)
There will perhaps be some folks that were planning to order one, but upon learning that they won't get one until 2016 at the earliest, they might simply hang tight and wait for reviews to come out.
If Elon later said that production had sold out for 2016 as well, that would stem current orders even more.
I'm confident they are working their financial strategies to include modest orders. (20,000 is awesome, but still less than what it could be if Tesla were actually pumping it w/ marketing efforts)
There will perhaps be some folks that were planning to order one, but upon learning that they won't get one until 2016 at the earliest, they might simply hang tight and wait for reviews to come out.
If Elon later said that production had sold out for 2016 as well, that would stem current orders even more.
I'm confident they are working their financial strategies to include modest orders. (20,000 is awesome, but still less than what it could be if Tesla were actually pumping it w/ marketing efforts)
Raffy.Roma
Rome (Italy)
chickensevil
Active Member
Muskol
Member
Rumblings on Twitter about a GS note stating 6BN capital raise still required. Unconfirmed just tweets
chickensevil
Active Member
Just silly, well, gonna have to dump out some stuff to stop the bleeding on market open, good thing I am still hanging on to a put that expires next week which will *hopefully* balance this out...
This makes no sense though because one, why would they need 6BN out of nowhere, 2 why would they need to raise money at all if they are going to be cashflow positive in Q3 2015 and Elon said they could likely finish funding the factory on their own? So this seems like FUD from GS in order for them to buy more shares... Just saying, they have a history of saying one thing and doing another (gold market, I am looking at you...)
Raffy.Roma
Rome (Italy)
Muskol
Member
Goldman Sachs Remains 'Guarded' on Tesla (TSLA) Despite Progress; Analyst Maintained Neutral Rating
http://www.streetinsider.com/Analyst+EPS+View/Goldman+Sachs+Remains+Guarded+on+Tesla+%28TSLA%29+Despite+Progress%3B+Analyst+Maintained+Neutral+Rating/9846612.html
chickensevil
Active Member
yep, was just about to post this, you seemed to have found it before me... this is now the second underwriter that has written a "reserved" report, I still say buy on this dip because there is no way MS and GS are pushing this down without good reason (as in for their own gain).
The note does not seem to have any new negative information. The cap.raise musings is GS speculation -nothing more. In fact they report that TM indicated that no cap.raise will be required, but are "concerned" nevertheless. Looks like bot stampede to me. Are we going to have another GS report golden buying opportunity?
Chickenlittle
Banned
They did not change their price target, it REMAINS at $210
It remained $210 since 8/1/2014, when they raised it from $200.
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