As a corporation becomes more illiquid and more financially unstable, the difference between bonds and equity narrows. The question that SpaceX directors would need to answer would be "Why did your company, primarily involved in aerospace and with no prior experience or expertise in distressed credit or junk bonds, invest substantial funds in a Caa1/B- long-term obligation? Was it because of the influence of the common controlling shareholder?"
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sundaymorning
Active Member
Just a friendly reminder that June 6th shareholder meeting is coming up. Since Elon has been showing some optimism lately I’m hoping he reveals a little more good news after the planned shutdown.
vinvin218
Member
A Chinese media report: (Rumor) from a person who is close to the Shanghai government: "Tesla will set up GigaFactory in Shanghai and already signed documents with the city government"
here is my tweet : vincent on Twitter
here is my tweet : vincent on Twitter
I'm being careful with my expectations for the annual meeting, since I've attended or watched a bunch of them and they typically end up being a lovefest for Tesla, or some small group such as the non-leather seat gang makes a big appearance and tries to steer the agenda a bit (and sometimes succeeds).
That said, Musk is tired of the media BS and the manipulations by shorts. If he ever lets a big cat out of the bag at an annual meeting, this would be the one.
bdy0627
Active Member
Here's a good one:
Tesla Just Hit a Pair of Big Milestones for the Model 3
Tesla Just Hit a Pair of Big Milestones for the Model 3
sundaymorning
Active Member
Well this confirms it, no wonder Elon seemed so sure about China during Q1 Confernece Calls. Here’s the English translation to the article, thanks Vincent.
May 25th According to Caixin News, Tesla, an American electric vehicle company, will be made in Shanghai.
The report said that a person close to the Shanghai municipal government disclosed the news and stated that Tesla and the Shanghai municipal government had signed relevant documents in May this year. People familiar with the policy said that such documents are usually intentional investment documents and have no legal effect.
As of press time, Tesla China did not comment on this.
May 3 at the earnings conference call, Musk revealed the news of the Chinese battery factory, Musk said that the fourth quarter of this year will announce the second super battery factory matters, also plans to announce the construction of a super battery factory in China (gigafactory ) The location. In addition, Musk said that the battery factory will also take into account car manufacturing.
In the middle of this month, from the industrial and commercial information, Tesla established Tesla (Shanghai) Co., Ltd. in Shanghai and Tesla Motors Hong Kong Co., Ltd. holds 100% of the shares.
The information shows that Tesla (Shanghai) Co., Ltd. was established on May 10, 2018 with a registered capital of RMB 100 million and registered in the Pudong New Area. It is mainly engaged in technology in the field of electric vehicles and parts, batteries, energy storage equipment and photovoltaic products. Development, technical services, technical consulting, technology transfer, and wholesale, commission agency, and import and export business of the above-mentioned similar products, providing related supporting services, electric vehicle demonstration and product promotion
sundaymorning
Active Member
I’m pretty sure someone will ask him are we on track for 5k end of month? Since the 5k number has been so widely published.
Causalien
Prime 8 ball Oracle
vinvin218
Member
should i wait couple more days to post? lol
Causalien
Prime 8 ball Oracle
Kind of just reminds me that once anything gets to China, there's no more secrecy possible.
This article is really important because it highlights:
* Tesla has already achieved a production rate of 500 M3s/day (3,500/wk)
* A major bottleneck, the battery/chassis marriage station has already been fixed and is above the 5,000/wk pace
* As production rate increases, shorts have been holding or increasing their positions, leading to extremely crowded shorting at a time right before potential catalysts send the SP much higher
Bottom line: it's a really bad time to be a TSLA short (hint, hint to our few resident shorts) and a good time to be positioned in the stock as a long. All depends upon Tesla delivering on the 5,000/wk M3 production rate. As Elon would say, "place your bets!"
jelloslug
Active Member
This little dip may be the last time to get out with their shirts.
I'd like to point out that the original source Caixin News，is one of the most credible news agency in China.
China is going through major changes in recent months. Every city is on their own, they fight hard for (valuable) people and companies. They offer all kinds of support to lure them to their cities. There have been this kind of activities in the past, now it is at a whole new level.
Now that China allows 100% owned factories, Tesla can build in any city. This is like how every state in the US want Amazon to build the next headquarter. Shanghai is worried about losing Tesla from competing cities. That's why things can move so fast.
mershaw2001
I'm short the short sellers
Am I to assume that they won't be making significant progress on the china factory until they are cash flow positive? That they are filing right now for anticipation of starting construction next year?
Maybe they have an infusion of cash from Chinese investors? I wonder if they could have a Chinese subsidiary where its funding and finances is separate from the USA?
Maybe they have a big purchase order from chinese govt and an advancement payment to build factory to get rolling. This could envelope both cars, and storage/solar. A big announcement could cause a squeeze depending on the size. Keep in mind tencent already owns 5%. Let the party begin
K_Dizzle
Member
I believe Sparks is supposed to cost $5 billion altogether. Tesla should have somewhere around $2 billion on hand right now. There is still some capital investments needed for model 3, lots of capital needed for model Y (another factory). It will be interesting to see how they raise all this money. I do think it’s already been figured out though.
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