tinm
2020 Model S LR+ Owner
Why did Tesla decide to raise capital? Because they thought it was a good decision to. Thus the company should be worth more than it was before the raise. It could however indicate that things were not so well as we thought before the raise, but it could also indicate that things were better than we though, we don’t know.
What will they use it for? We don’t know, but here are some plausible ideas:
1. Secure the company. Be prepared if Covid-19 kills FCF the coming quarters or for some other reason the company has a difficult time
2. Use cash to acquire some company or part of a company, for example Panasonic GF1 cell production, some Semi truck manufacturer, some Lithium miner, some taxi/ride sharing company
3. Build another battery gigafactory with own cell production
4. Build more car factories for Semi, Cybertruck, Model 2 or more 3/Y in China/Asia/Europe
5. New product line for example bicycle, Escooter, boat, EVTOL
6. Some combination of above
Another (admittedly out there, but hey) possibility:
7. Fund the replacement of thousands of battery packs should the Batterygate court judge rule that Tesla owes each of the affected owners a new battery.