TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Tesla Returns to Wall Street to Raise Capital

Discussion in 'Tesla' started by dgindio, Mar 20, 2017.

  1. Tam

    Tam Active Member

    Joined:
    Nov 25, 2012
    Messages:
    2,362
    Location:
    Visalia, CA
    If Tesla is short in cash and unable to get some, then bankruptcy would be a concern.

    It was a concern when Tesla used to be a private company and you had to come back to those same friends and family to ask for more cash but at some point they would say no because their pockets were limited.

    However, that is no longer true ever since Tesla has become a public company because cash shortage is no longer a problem.

    If it needs cash, it just ask the public and the public has been more than happy to give it cash in exchange for stocks/bonds/loans...
     
  2. BluestarE3

    BluestarE3 Active Member

    Joined:
    Apr 2, 2016
    Messages:
    2,508
    Location:
    Norcal
    Also, Seeking Alpha is seldom (if ever) a credible source of news regarding Tesla.
     
  3. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,979
    Location:
    Seattle
    If investors really feel like the shares are being diluted or have less value after the capital raise then the price goes down. If not, they don't and it is not an issue.

    I'm wildly guessing here of course
     
  4. ecarfan

    ecarfan Well-Known Member

    Joined:
    Sep 21, 2013
    Messages:
    12,543
    Location:
    San Mateo, CA
    • Informative x 1
    • Like x 1
  5. dhanson865

    dhanson865 Active Member

    Joined:
    Feb 16, 2013
    Messages:
    2,015
    Location:
    Knoxville, Tennessee
    True, in the last quarterly conference call Elon said the didn't have to do another equity raise but that it might make everyone feel safer if they did so he wasn't ruling one out. Either way he said with or without a new raise they would have enough funds to get Model 3 out and then it'd be a non issue.

    The math in Tesla Announces Offerings of Common Stock and Convertible Senior Notes • r/teslamotors put the dilution between 2.3% and 3% depending on how you look at it.

    With the overall takeaway that Model 3 is on track and the stock is rising I have no concerns about 2% dilution.
     

Share This Page