IMO its a good move and makes a lot of sense. Yes, Elon said tat ER call they spend what they can but lets not forget at that point in time the company value was many billions lower than today.
With a much higher SP everything changes and you reconsider if its a good time to plan for the future different than before. They did exactly the same back in 2013 and it has been proven to be good for shareholder at the end too.
The dilution is meaningless and now we own a portion of that cash collected to it does not make any difference unless you sell today at a low price and buy later again in at a higher one.
I did expect at the ER them to announce more capex investments which did not happen but now the situation is financially even better which may give them the opportunity to reconsider. They produce cash and collect cash to push faster forward.
ArkInvest has a similar opinion and is more confident in their bull case now because they see the requirement to build more GF to cope with the demand. Beside Texas there are Twitter rumors about talks in Bulgaria and we know from Germany (Nordrhine Westfalia and Lower Saxony) that the leaked GF talks last year have been correct.
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#Tesla’s capital raise increases our confidence that it will gain market share in the
#EV market during the next 5 years,
increasing the probability that our bull case for the stock is correct.
Cathie Wood on Twitter
@ARKInvest
included $15B of equity dilution in its 5 year forecast for $TSLA, so $2 billion+ now makes sense.
We wouldn’t be surprised if Elon announces plans for another #Gigafactory in China, a vote of confidence in the resilience of that country.
Cathie Wood on Twitter