Interesting,
so they are desperate for even more money.
In the beginning there was a talk about 120-140 million,
now it´s a "little" more....
Now let´s hope for some life infusion from Daimler/Abu Dhabi,
maybe even positive news would help the stock.
What definitely seems the case, that the new B Class "Electric Drive" stems from their cooperation, tho no news ATM how many they really plan to bring to market.
At least the car is real and @ Paris Auto Show, alive and kicking:
b klasse electric - Google-Suche
Maybe the drivetrain of the new SLS "Electric Drive" (former E-Cell labeling)
is also something from Palo Alto, tho this would be spectacular news and Elon would´ve banked the PR on that.
*praying*
C´mon guys
Where do you get "desperate" from? It's just sound management.
Actually, I am very encouraged by how events are proceeding. As I stated last week, if Tesla can get good terms for their secondary the net result could be to increase the value of the company. If Tesla was in dire shape the offer price would have been lower, and there would have been fewer shares. As it is the offer price was higher than the actual market price of the stock at the time of the announcement.
Maybe some of the real investment types in this thread can comment (my expertise is in newspaper publishing/consulting and software development/deployment), but in my experience if a company is offering a million shares at a given price, but then decides to offer 2 million shares at the
same price, thats an expression of strength, not weakness and is a very good thing overall.
There are two reasons that I can think of off hand why this is true. First, 1 million shares @ $1/share means your company is worth $1,000,000. 2 million shares @ $1/share means your company is worth $2,000,000. Being desperate to be worth $2,000,000 instead of $1,000,000 seems pretty sane to me.
Second, Tesla worked with its underwriters (Goldman Sachs) to determine the offering price and how many shares. They do this by polling the market to determine demand and then plug it into their models. Basic economics rules everything, and the price of anything (including Tesla) is determined by the interaction of supply and demand. So selling more stock at the given price is an indication of strength, not weakness. We'll see how it goes when the shares actually hit the market, but the fact that the market is pricing the stock at ~$29 in anticipation of the new issue is a very good sign.
Everyone (including me) has been concerned about a gun to the head scenario (as painted by the shorts) where Tesla gets taken to the cleaners during a secondary. This is not that scenario. From what I can see, the net effect of this offering is that Tesla will have a higher market cap with little (if any) real dilution to existing shareholder value.
And in exchange for making their company more valuable (with little, if any, dilution of shareholder value), management will get a hefty new chunk of capital to work through their short term production issues while continuing to fund their new product development, retail rollout and SuperCharger deployment. Yes, they sound desperate as heck. I'm terrified for their prospects :wink:
Anyways we'll see once the secondary hits. If the price drops to ~$26 that would be an expected (to me) level of dilution for this many extra shares. At ~$28 or more thats basically no dilution from a shareholder standpoint and a big win for the company.
Tesla Motors Increases Stock Sale - WSJ.com
Investors cheered the vote of confidence shown by the larger than expected number of shares, boosting Tesla's stock price 4% to $29.65 in Friday afternoon trading. Goldman Sachs GS -1.35% Group is handling the share sale.
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It may be that many are expecting what IIRC is called an "up-round", that is, a stock offering during which the stock price goes up.
That's what happened during Tesla's last offering. We were discussing it at the time, as Elon had made statements that at his previous companies, he also did several up-rounds. He seems to be good at that.
That's what I am thinking. If the secondary comes in above $28/share thats basically free money from both a management and shareholder perspective. Considering the problems it solves, it tends to support the idea that the price of the stock is being held back by short term issues which this offering does a fair bit to mitigate.
