Krugerrand
Meow
You might be right but I think there's a risk of lost opportunity. Other's are investing heavily in the EV space, and the decision to raise capital or not could be the difference between dominating the electric pickup and semi markets or not. To me, raising capital is something you do when you have great ideas but not enough money to take them to market (Where as buying back stock is something you do when you are all out of ideas... but I digress).
So to restate the question, do you think Tesla will be worth more as a company if they could launch Y, Roadster, Semi and Pickup truck all in the next 2 years with production meeting demand or if they only have enough capital to launch Y?
As a stock holder I'd rather have my shares diluted slightly (say 5%) to allow Tesla to increase their cash on hand by 2.5B so they can do more, faster. Not to mention it would take away yet another short thesis. This would have been more timely when the stock was at 360 a share recently, but even now a 5% move is nothing in my mind compared to the value of allowing Tesla to operate with less cash constraints.
There’s only so much money can buy. Tesla can only go as fast as they can go and throwing money doesn’t get it done faster. So many things have to come together to produce a vehicle and do it right, but ultimately *time* comes into play. Some things just take a certain amount of time even with someone like Elon pushing the time frame limit.
Design takes time
Building production lines take time
Building die sets and presses and press lines takes time
Building Gigafactories takes time
Building charging infrastructure takes time
Building a neuronet takes time
Advancing battery tech and other tech takes time
Getting the right people in the right positions takes time
Finding and implementing efficiencies takes time
Getting products down to affordability takes time
Shipping product around the world takes time
Educating people on the advantages of EVs takes time
Getting laws and regulations changed takes time
The list is endless, but ultimately changing to sustainable transportation and sustainable energy and basically changing the world takes TIME.
If there was a better way, Tesla would be doing it. Sure unlimited money would make certain things easier, less painful, but not necessarily faster. Faster is not synonymous with better.
When you’re feeling down or upset about TSLA or Tesla, take a moment to reflect on just how far they’ve come in the last decade. It’s freaking amazing! And it’s been fast.