Indeed that may be true, if something like that were actually contemplated. More realistically, when considering the huge demand for the Model 3 based on reservations, the share price would likely falter, if production were ramped up solely at the pace allowed by profits from current products. The market expects Tesla to do what is necessary to deliver Model 3's fairly soon at a rapid pace, and that likely requires external funding. That done through equity raising need not be paid back and adds no interest expense. It increases the net assets of the company. Its use is a sound strategy for a rapidly growing company that must match production with known demand.
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