I wouldn't go as high as $20B (at least not in the ~3 year timeframe... with a longer timeframe, sure). But it's certainly a lot. And no, I don't think it will all be internally generated. Rather, once Tesla has been profitable (esp. for two quarters) it will make it much easier for Tesla to borrow on favourable terms. Hence scaleup can be accomplished via a combination of internally-generated revenue and debt. Which - it should be mentioned - is the strategy that Tesla has stated during the investor calls.
Shortsville Times: Tesla unable to sell Model 3s, stores them on trailers The above photo was taken yesterday on an Oregon interstate, where car carrier trucks packed with Tesla cars have caused a major traffic jam. We have received reports of similar incidents along the west coast. According to a Tesla spokesperson these shipments of cars are part of the "7 day delivery push" where thousands of Model 3's would be shipped to new owners this week - but industry experts Dana Hull, Jim Chanos, David Gelles, Mark Spiegel, Andrew Left and Bob Lutz expressed deep concern about this approach. According to Bob Lutz, "as everyone in the car industry knows, newly manufactured cars are first shipped to dealerships, where they are often stored for months until they are sold by expert car salesmen who know how to connect with customers on a personal level. These cars were obviously never in any dealership showroom, and this year Tesla's showrooms scored dead last 10th year in a row in pressure-sales ranking, so how can Tesla possibly claim that these cars were already sold? They haven't even hired a single car salesman as far as I know. It makes no sense and I believe the only explanation for this is that Tesla is trying to hide its unsold inventory, by storing them on trailers." "The attempt by Tesla to characterize these shipments as already sold Model 3 inventory looks very much like clear-cut securities fraud that reminds me of the days when I shorted Enron" Jim Chanos added, stressing that his lawyers advised him to point out that technically he is not accusing Tesla of fraud. Dana Hull questioned Tesla's ability to finance the waves of class action litigation that would certainly stem from this incident. Our panel of industry experts also called for the ouster of Elon Musk as the CEO of Tesla: Musk has overseen a disappointing manufacturing output increase of over 300% over the last 12 months, demand for Tesla's products is lackluster, and he was also responsible for high trading losses for investors like Chanos, Spiegel or Left. "The SEC and DOJ needs to represent the interests of all investors, not just that of Tesla shareholders" Spiegel added. (Elon Musk has not responded to our repeated attempts to contact him over Twitter.) Copyright (c) 2018, Shortsville Times, Chief Editor @HG Wells.
A quasi equity product like a convertible note could be interpreted as you describe. However I would argue that buying back stops the issuance of new shares rather than buys back already issued shares. Good arguments could be made both ways.
I suspect it depends on what market expectations are. When Tesla issued the notes they registered the new shares with the SEC, and could issue them if note holders request conversion. If market participants expected these shares to be issued above $360 then this could have acted as a sell barrier/ceiling at around $360. By announcing that they won't issue new shares, the barrier property of $360 should be weaker next time TSLA reaches those levels.
Obviously need to switch to Tesla Semis Edit: For the record, I neglected to notice this was Market Action. Thought it was a cross posted image after I controlled the urge to post the first time . On topic: only slightly down in pre-market.
We all of course know that's coming. Tesla, SpaceX and Boring Company are obviously going to switch 100% to Semi and be the first adopters. Guaranteed business which won't complain about any teething problems
Not being a cheereader if you are suggesting that. Simply saying this was discussed endlessly weeks ago and was hoping that we could move on to what I consider more important issues right now. That subject of SEC investigations etc will be resolved ultimately and then we can discuss.
In one of the responses: Also “TESLA 3Q DELIVERIES SEEN SLIGHTLY BEATING CONSENSUS: GOLDMAN” Ah yes: "Goldman Sachs analyst David Tamberrino maintains Buy on Tesla Motors (NASDAQ: TSLA) price target of $210.00.The analyst expects Q3 deliveries..." Huh? His current status is SELL. In any case, how can they have a BUY rating when the SP is $100 above their price target? Colour me confused!
TheTeslaGuy on Twitter TheTeslaGuy @GuyTesla Replying to @GuyTesla @Bob_Mayo and Hilarious highlight of the day: The Jaguar dealers that had just moved in next-door to Tesla Littleton commented on all of the truck carriers of cars showing up, and asked, “where are you going to put all of these?” And the answer was “They aren’t staying.” Sad faces...
Note that this article is from The Telegraph of the UK, so it probably doesn´t apply to the US directly. Is the WLTP test cycle even used in the US at all?
When will TSLA owners get sick of giving money to the fudsters by believing their nonsense and selling at a loss?
Exactly. I always blame weak longs more than shorts. Shorts have only no more than 40M shares of ammunition. Longs have unlimited funds. Just keep buying until shorts have to buy back.