However, on a conference call with analysts after Tesla reported second-quarter earnings, Musk admitted that if the company were planning an equity raise, now would be the time. Here's an exchange with Bank of America Merrill Lynch auto analyst John Murphy from the call (thanks to Seeking Alpha for the transcript).
"[W]hen you look at the cash burn and how the capital market sometimes shift very quickly, it just seems like an opportune time to take advantage of what you might need in the future, so that's why we're asking," Murphy said.
"[W]e're in the same sort of mind frame as you are," Musk responded.
At the time, Musk sounded as if he were grudgingly acknowledging Murphy's point. But it now looks as if he was telegraphing the equity raise, without getting into any specifics. And the bottom line is that is a genuinely ideal time for Tesla to sell equity, even if to a certain extent that's an admission that there isn't enough money coming in to mitigate the many risks that the company faces over the next few years.
In fact, Musk has repeatedly characterized equity raises as a strategic way to get ahead of risks to the electric-car startup....
