IF, as now probable, Tesla Model 3 garners 400-500 K preorders by this fall, with $ 1000 deposit, per car, I am quite sure many large global banks and even funds will be lining up to offer $1 Billion - $ 2 Billion of non-convertible debt, under VERY favorable terms !!!
So, no equity raise will be needed at least through year end 2017.
This puts one more nail in the coffin for the shorts !
The next nail in the coffin will be a new Model S design/ refresh.
After that, perhaps a Model Y (SUV variant starting at say $38,500) unveil this fall but not entering production until late 2018. I think this is needed to suction up EV based mass SUV demand, just like with the Model 3, before any other competitor does. This is strategic and war like competitive preempting strategy, IMO.
And finally, significant profitability starting with 4 th quarter 2016 earnings. This again, will ensure banks salivating to offer debt to Tesla, negating again any need for an equity raise.
I am saying this as a Finance guy and ex Wall Street guy......
So, no equity raise will be needed at least through year end 2017.
This puts one more nail in the coffin for the shorts !
The next nail in the coffin will be a new Model S design/ refresh.
After that, perhaps a Model Y (SUV variant starting at say $38,500) unveil this fall but not entering production until late 2018. I think this is needed to suction up EV based mass SUV demand, just like with the Model 3, before any other competitor does. This is strategic and war like competitive preempting strategy, IMO.
And finally, significant profitability starting with 4 th quarter 2016 earnings. This again, will ensure banks salivating to offer debt to Tesla, negating again any need for an equity raise.
I am saying this as a Finance guy and ex Wall Street guy......
