Who knows what is going on pre market but raising capital is exactly what Tesla should do with current valuation. Especially if the valuation can't be sustainable due to the theory flying around here of a naked short squeeze.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Boo. I didn't want the squeeze to end.
Capital raise is bullish in my opinion. They will use the money wisely.
- Probably needed to make S&P inclusion possible
- A larger cushion for economic black swans
- More money for expansion (GFs, service centers, superchargers)
- For only just over 1% dillution
What's not to like about this move?
- A larger cushion for economic black swans
- More money for expansion (GFs, service centers, superchargers)
- For only just over 1% dillution
What's not to like about this move?
ByeByeJohnny
Active Member
Yes. S&P inclusion announced tonight. Or possibly the same day they announce the price for these shares.
anthonyj
Stonks
There is no set price for the shares. They are just authorized to print $5b worth of shares and sell them on the open market whenever they want
ByeByeJohnny
Active Member
That seemed like a lot. Until I remembered that's less than 2 million old shares. About half what I expected them to do.
If the volume is anything like yesterday, they could sell that entire offering in 2 days with only a minor effect on price.
ByeByeJohnny
Active Member
Oh, so this is different from when they did it at around $700 awhile back? Cause they did announce a price then and everyone could try to get in.
Edit: Just saw that they are to be sold "at-the-market"
To me no fixed price almost guarantees there's a S&P inclusion anyday now.
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Mike Smith
Active Member
It also validates the recent SP move. This is hugely positive.
In February Tesla raised 2B with a share price of $767 - or $153.4 in post split numbering.
It would make sense that this is set up for TSLA to allow index funds in at a fixed price instead of just blowing the SP up. It will blow up anyway, but I guess shows good will to meet them part of the way?
Eh, what the hell do I know? I think Zoom is a bubble, but obviously I do not know much at all. Zoom should float 10B raise at a 300B market. It would gain another 200% overnight.
Imagine if SpaceX had been public the past year? What would have been going on with that ticker now?
Eh, what the hell do I know? I think Zoom is a bubble, but obviously I do not know much at all. Zoom should float 10B raise at a 300B market. It would gain another 200% overnight.
Imagine if SpaceX had been public the past year? What would have been going on with that ticker now?
This offering is an "At The Market" offering, meaning that the banks running this will be selling shares, for Tesla, in the market "from time to time" until they have raised 5B$. There is no specific offering price.
The banks are being paid 0.5% for this service.
The banks are being paid 0.5% for this service.
From my TD feed: Shares of Tesla Inc. (TSLA) took a hit in premarket trading, but were still up 1.9%, after the electric vehicle maker disclosed a deal to sell up to $5 billion worth of its stock in an "at-the-market" offering program. Just before the offering was disclosed (Tesla's stock keeps rising, after soaring 74% in August for biggest monthly gain in 7 years), the stock was up as much as 7.9%. At Monday's closing price of $498.32, the program could represent up to 10 million shares, or about 1.1% of the shares outstanding. The "equity distribution agreement" was made with a host of Wall Street firms as sales agents, including Goldman Sachs, BofA Securities, Barclays, Citigroup, Deutsche Bank Securities, Morgan Stanley, Credit Suisse, SG Americas, Wells Fargo and BNP Paribas. The sales agents will receive a commission of up to 0.5% of the proceeds. The stock has rocketed nearly fivefold (up 495.6%) year to date through Monday, while the S&P 500 has gained 8.3%.
Better raise price targets analyst so you can your boss can make a bigger commission.
(A) still has only 1 "synthetic" share but wants 4 more "synthetic" shares
A is booked 4 extra shares as well (doesnt matter if bought on margin or not)
the loan to B is also increased to 5, as B i snow short 5
So... it's like shorting, but profitable.
A shower thought. A what-if.
If Tesla anounces their 1,60934 million km battery (in addition to their 1,60934 million km drivetrain), what if they would also warrant their vehicles for this amount of km or say, ten years. Together with a guaranteed buyback price above any current ICE vehicle (say degressive -15% per year and/or 25k km, so about 50% for 5 years and 125k km ) for use in their robotaxi fleet. This would make buying anything other than a Tesla financially insane for anyone who can count two and two together.
This is just a thought. Not even a back of the napkin math. So bear with me.
If Tesla anounces their 1,60934 million km battery (in addition to their 1,60934 million km drivetrain), what if they would also warrant their vehicles for this amount of km or say, ten years. Together with a guaranteed buyback price above any current ICE vehicle (say degressive -15% per year and/or 25k km, so about 50% for 5 years and 125k km ) for use in their robotaxi fleet. This would make buying anything other than a Tesla financially insane for anyone who can count two and two together.
This is just a thought. Not even a back of the napkin math. So bear with me.
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