Sudre
Active Member
I wonder if this means they have decided where to build the Y and they want funds to start construction.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Stupid question - why do a capital raise now, when SP is so low. Secondly, why not just buy on the open market, which is lower than the offer??
I don't care about dilution, if this stock goes where I expect, won't make any difference...
Here's the offer: https://ir.tesla.com/node/19821/html
Apparently Elon will be buying $10m worth - like one of us getting 5 ore shares, I suppose
Necessary Evil
(running low on $$)Missed opportunity in cap raise last year when SP was ATH. So A Jonas was right on this one.
I think Q1 miss was more than what Tesla had planned for due to (expiring Tax credits, Seasonality, ROW deliveries)
.. Hope this speeds up MY, Semi and we are back to growth (Beast) mode again.
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Elon Musk may buy $10 million of Tesla stock in new offering
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The offering is being underwritten by Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Morgan Stanley, Credit Suisse, Societe Generale and Wells Fargo
All the usual suspects. We can now expect good media coverage on CNBC and Bloomberg ...
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The offering is being underwritten by Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Morgan Stanley, Credit Suisse, Societe Generale and Wells Fargo
All the usual suspects. We can now expect good media coverage on CNBC and Bloomberg ...
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I would guess that this means a GF in Europe to be announced soon... or an additional factory in California.
Not that I would know jack.
Could be rope for the shorts to hang by, or a message to wall street that is not very nice. I will be expecting to hear how this indicates TSLA is out of money.
Not that I would know jack.
Could be rope for the shorts to hang by, or a message to wall street that is not very nice. I will be expecting to hear how this indicates TSLA is out of money.
"Elon may buy $10m"? How about Legs-Larry grabs a bunch more, come on Ellison, take one for the team!
Edit - sorry, the above "might" is from CNBC, the Tesla news-release says he will. More mis-reporting...
Edit - sorry, the above "might" is from CNBC, the Tesla news-release says he will. More mis-reporting...
Question:
With a convertible note, is it better to issue when the stock price is down so that, once TSLA returns to normal, it covers the increase in note value?
General OT thoughts: Should I feel bad that I can't support Tesla by purchasing either the new stock or notes due to already owning stock ?
Nice to know that Musk is also buying below previous purchase prices, makes me feel better. (I'm sure his average cost is way below mine though).
With a convertible note, is it better to issue when the stock price is down so that, once TSLA returns to normal, it covers the increase in note value?
General OT thoughts: Should I feel bad that I can't support Tesla by purchasing either the new stock or notes due to already owning stock ?
Nice to know that Musk is also buying below previous purchase prices, makes me feel better.
(I'm sure his average cost is way below mine though).
Impressive and sobering.
While the Tesla's crumple zone and stiff platform of its driver/passenger cabin is vital, a contributing factor to why the two cars fared so differently is the apparent difference in their weight.
This is clear from the much more violent motion (incl. a 360 degree spin) of the other car as the collision unfolds. Even without a fatal, blunt trauma from the deformation of the driver's space, the g-forces alone could be non-survivable (compounded by the fact that there is no emergency lane and that professional help likely experienced a delay in reaching the site).
PS. Since the accident was in a tunnel, I think the other drivers should have stopped right away, preventing a very high concentration of vehicles and people - reducing the risk of additional accidents and a more difficult evacuation in case of a fire.
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Artful Dodger
"Neko no me"
"With respect to the notes, Tesla intends to enter into convertible note hedge transactions and warrant transactions to limit dilution of its common stock."
It’s now well known that Tesla is attracting an unprecedented percentage of mid priced car owners to trade up to a luxury priced vehicle. This is great news for future M3 demand, but it’s a cause for caution for future MS demand. The ratio of MS to M3 is likely to be lower than the historical ratio of higher priced to lower priced cars of other luxury brands.
This partially explains the dramatic falloff of MS sales in Q1 beyond even the expectations of management. Q1 is the first quarter when just about anyone in the world who wants a Tesla could buy an M3; they didn’t need to stretch further to an MS.
Management’s projections of MS sales for 2019 may be too rosy, which will negatively impact profitability and cash flow from what they are projecting.
That said, the sky is not falling. The M3 and MY are the future of the company. The worst case implication of a bit less MS demand is a need for a modest capital raise.
Other than that, Tesla looks in good shape. It will continue to make mistakes typical of any early stage high growth company, but its large moat and sandbox gives it a wide margin of error.
And that’s just looking at Tesla as a car manufacturer. If robotaxis come to pass in the next few years (and that now seems more likely than not), Tesla blasts off to truly uncharted territory.
This partially explains the dramatic falloff of MS sales in Q1 beyond even the expectations of management. Q1 is the first quarter when just about anyone in the world who wants a Tesla could buy an M3; they didn’t need to stretch further to an MS.
Management’s projections of MS sales for 2019 may be too rosy, which will negatively impact profitability and cash flow from what they are projecting.
That said, the sky is not falling. The M3 and MY are the future of the company. The worst case implication of a bit less MS demand is a need for a modest capital raise.
Other than that, Tesla looks in good shape. It will continue to make mistakes typical of any early stage high growth company, but its large moat and sandbox gives it a wide margin of error.
And that’s just looking at Tesla as a car manufacturer. If robotaxis come to pass in the next few years (and that now seems more likely than not), Tesla blasts off to truly uncharted territory.
A larger cash buffer is a good idea, even if they don't end up needing it. It will help to protect against unexpected issues or a recession, quiet down the TSLAQ fanatics (at least a little you can hope) and also provide more confidence to customers that Tesla is financially stable. The final issue price will be decided by the market.
Note, we now have hindsight bias, but it is not possible to know for certain whether raising capital at $350 etc last year was the right or wrong decision. For example if there was a 5% chance last year of ever needing to raise more cash and now there is a 40% chance. Last year raising this cash may have cost say 2% dilution and now the same amount of cash is 3% dilution. The risk of diluting shares unnecessarily and never actually needing the cash was (100%-5%) *2% last year = 1.9% probability weighted wasted dilution. The risk this year is (100%-40%)*3% = 1.8%. If this is the case, it is a better decision to raise capital now than it was back then.
In reality, I think the decision not to raise capital last year was the wrong decision and last year would have been a better time. Most likely Elon was manipulated by shorts and FUD writers into not raising capital. Elon didn't raise capital just to prove a point to his enemies, which is exactly what they wanted him to do.
Either way, a few % dilution is irrelevant in the long run.
I wouldn't know what to do with my life any more...
OT
From watching offset crash tests, most cars with high marks spin off the impact point rather than absorb the impact.
The big problem I see for the other driver is that their airbags deployed on the first, lesser, collision. Thus, they likely provided little to no protection (already deflating) when the car hit the Tesla near head on.
From watching offset crash tests, most cars with high marks spin off the impact point rather than absorb the impact.
The big problem I see for the other driver is that their airbags deployed on the first, lesser, collision. Thus, they likely provided little to no protection (already deflating) when the car hit the Tesla near head on.
Jonas and Tamberino upgrades coming then? Imagine if they did that today, just imagine the squeeze...
And that the airbags had already inflated with the first contact, so likely already deflated somewhat when it hit the Tesla.
One wonders if this was just driver inattention, texting, or whatever, or a technical fault with the car?
I wouldn't know what to do with my life any more...
In US at least it's time to plan the Tesla Solar roofs. Fed credits of 30% expire this year. Tesla with power wall is coming almost equal $ to what my friend installed from another party without power wall last year. I'm feeling happy thinking about this project
Anyone else planning and has more info on savings etc pls share (we can take it to another thread)
OT solar
While 30% is coming to an end, the credit enters a phase out period.
Residential Renewable Energy Tax Credit | Department of Energy
Solar-electric property
Thanks for the heads up!In US at least it's time to plan the Tesla Solar roofs. Fed credits of 30% expire this year. Tesla with power wall is coming almost equal $ to what my friend installed from another party without power wall last year. I'm feeling happy thinking about this project
Anyone else planning and has more info on savings etc pls share (we can take it to another thread)
While 30% is coming to an end, the credit enters a phase out period.
Residential Renewable Energy Tax Credit | Department of Energy
Solar-electric property
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
- The home served by the system does not have to be the taxpayer’s principal residence.
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