Tesla Returns to Wall Street to Raise Capital

[dgindio]

Tesla Returns to Wall Street as Musk Readies Model 3 Rollout - Hamodia Jewish Community News

Tesla Bankruptcy Chances Increased Exponentially With The Capital Raise - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha

Tesla to raise up to $1.15 billion to help Model 3 launch - Tribble Agency

 

[Tam]

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...

 

[BluestarE3]

Also, Seeking Alpha is seldom (if ever) a credible source of news regarding Tesla.

 

[Discoducky]

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

 

[ecarfan]

Tesla Returns to Wall Street as Musk Readies Model 3 Rollout - Hamodia Jewish Community News

QUOTE: “Bears will likely say the deal is too small,” Ben Kallo, an analyst at Robert W. Baird & Co., said in a note. “We believe this displays Tesla’s confidence in the Model 3 timeline and anticipate shares will move higher.”

TSLA is up sharply for the past 3 days.

Seeking Alpha might better be titled "Seeking Attention".

 

[dhanson865]

QUOTE: “Bears will likely say the deal is too small,” Ben Kallo, an analyst at Robert W. Baird & Co., said in a note. “We believe this displays Tesla’s confidence in the Model 3 timeline and anticipate shares will move higher.”

TSLA is up sharply for the past 3 days.

Seeking Alpha might better be titled "Seeking Attention".

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.