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Will Tesla do at capital raise in 2015?

Will Tesla raise capital in 2015

  • Yes, by issuing stock

    Votes: 22 21.0%
  • Yes, by selling convertible debt

    Votes: 31 29.5%
  • No

    Votes: 52 49.5%

  • Total voters
    105
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Empty link, Nigel.

Sorry, fixed it now.

Fortune story: http://fortune.com/2015/08/14/tesla-boosts-stock-sale/

On Thursday the company submitted a filing that said it was planning on raising $500 million by selling 2.1 million shares. But a day later — after likely seeing support from shareholders — Tesla said it plans to sell 2.69 million shares, which could raise $652 million.
If the underwriters exercise their full options, Tesla could raise $738.3 million.
 
OK, so apparently I can predict some things.

For information:
-- I predicted a capital raise because there are major unmet expansion needs which have to be done in the next couple of years before Model 3 is released (stores, service centers, superchargers) which it seems Tesla had not previously properly budgeted for. Plus unexpectedly high warranty costs.
-- I predicted stock because the stock price is actually pretty high -- it's certainly pricing in a successful model X launch -- and at this price the amount which Tesla would want to raise (which I figured at less than $1 billion) would be a small dilution. Debt causes a reduction in cash flow due to interest payments, while stock does *not*.
 
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