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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
This appeared on my TD Ameritrade and Thinkorswim newsfeeds from S&P Global Ratings, and would be in regard to Tesla debt securities:
10:37 am ET
S&PGRBulletin: Tesla Offering Plan Helps Financial Flexibility
Dow Jones
Edit for more details:
11:06 ET - Tesla's offering of $2B in stock could enhance the company's ability to fund future expansion plans and address its maturing convertible debt, according to S&P Global Ratings. "Our positive outlook reflects an increased likelihood that Tesla's credit metrics will improve more than our base-case projections because of higher demand and manufacturing-related efficiencies," S&P says. The ratings agency says it could take a positive rating action this year if the company demonstrates steady or better demand for its products and expands its production capabilities overseas--and if the company avoids significant operational missteps. ([email protected]; @depsebastian)
10:37 am ET
S&PGRBulletin: Tesla Offering Plan Helps Financial Flexibility
Dow Jones
Edit for more details:
11:06 ET - Tesla's offering of $2B in stock could enhance the company's ability to fund future expansion plans and address its maturing convertible debt, according to S&P Global Ratings. "Our positive outlook reflects an increased likelihood that Tesla's credit metrics will improve more than our base-case projections because of higher demand and manufacturing-related efficiencies," S&P says. The ratings agency says it could take a positive rating action this year if the company demonstrates steady or better demand for its products and expands its production capabilities overseas--and if the company avoids significant operational missteps. ([email protected]; @depsebastian)
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TSLA just needs to do a PR release and say, Elon was convinced by prodigy CFO Zach Kirkhorn to issue capital raise - this breaking news proves that even geniuses can receive and act on good advice.
So Bloomberg is saying that buying TSLA at $767 is too low? That they got a discount? I guess I can agree. Since TSLA is $809 now.
davecolene0606
Member
I'm pretty sure you just answered your own question.
Artful Dodger
"Neko no me"
Free retail wind power overnight, a Cybertruck in your driveway, and a rocket in your pocket.
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pretty much everyone reading this thread got a bigger discountSo Bloomberg is saying that buying TSLA at $767 is too low? That they got a discount? I guess I can agree. Since TSLA is $809 now.
What? Bulls have the audacity to move stock beyond max pain? Who the hell do they think they are?
A couple of possible scenarios for the cash raise I think.
1. Since the call they became worried about cash flow because of the virus etc.
2. Since the call the SP went up so much it looked stupid not to shore up the balance sheet.
3. During the call Elon was quite clear that if they had somewhere that made sense to spend the money they would spend it...perhaps plans in the last few weeks have changed regarding new GFs and/or battery plants.
Side note, I have a feeling that my cheap insurance $285 put I bought back in December will expire worthless on 3/20. Don't ask me how I know.
1. Since the call they became worried about cash flow because of the virus etc.
2. Since the call the SP went up so much it looked stupid not to shore up the balance sheet.
3. During the call Elon was quite clear that if they had somewhere that made sense to spend the money they would spend it...perhaps plans in the last few weeks have changed regarding new GFs and/or battery plants.
Side note, I have a feeling that my cheap insurance $285 put I bought back in December will expire worthless on 3/20. Don't ask me how I know.
Elon : we don't need to raise capital
Investors : shut up and take my money
Investors : shut up and take my money
My hunch is that Tesla is raising the money to build a skateboard factory and will announce a deal at battery investor day. I don't see how other automakers can compete by building their own skateboard. They will instead buy it and innovate on top of it. Currently no one cares about the skateboard of existing cars, they care about the brand, looks, and features. That will continue with EVs, with range and performance being new variables. If you can buy a skateboard and get close to Tesla's range and perf, why spend billions to develop one?
To me, the parallels to EVs and the computer industry are too close to ignore.
To me, the parallels to EVs and the computer industry are too close to ignore.
StealthP3D
Well-Known Member
That's a very efficient use of capital! The same money that will be used to educate your kids has already provided a very stark education to the persons funding your kids education. Killing two birds with one stone and everyone gets educated.
I love education!
Artful Dodger
"Neko no me"
Lol, unsurprisingly, they left out these pertinent details:
- TSLA closed at $581 the day Elon made that statement (Jan 29)
- TLSA Cap Raise executed at $767 (a 32% premium in just 15 days)
- Tesla raised $2B CA$H in less than 24 hrs (more likely 12 hrs)
- Tesla increased their Cash on Hand by 33% for < 1.5% Dilution
Cheers!
Update on Tesla Model 3 Inventory levels in US.
Around 600 M3 appeared in the Existing Inventory on Tesla Website on 2/14/2020. It appears Tesla has started to shift production for US market. For more info please follow the link for aggregate Tesla Inventory lists:
https://ev-cpo.com/hunter/
Around 600 M3 appeared in the Existing Inventory on Tesla Website on 2/14/2020. It appears Tesla has started to shift production for US market. For more info please follow the link for aggregate Tesla Inventory lists:
https://ev-cpo.com/hunter/
humbaba
sleeping until $7000
How is it more effective to sell fewer cybertrucks? If the production rate is low it won't satisfy demand allowing other makers to sell lesser vehicles. While it could have an impact on market price point for Ford, which of the following forces Ford's hand more with regards to pricing?
1,000 cybertrucks per year at $50k
100,000 cybertrucks per year at $50k
In other words, supply and demand pricing -- if Tesla doesn't scale production of the cyber truck then it would keep supply low and have the opposite effect of what you state.
Here a table based on last nights data which shows MaxPain and the additional payouts for strikes up to 850 (Calls, Puts, and Combined). This changes during the day but we don't have access to intra-day, so I can't update it. The incentive to suppress the SP grows rapidly as you move away from MaxPain (which in my opinion should be called MinPain).
I seriously doubt there's any meaningful shift to US production yet. Far too soon. And they've been filling up ships apace; I don't know where they would have gotten time for US production in there.
I think, based on the shipping schedule, that they might have done a bit of US production early in the quarter to meet unmet deliveries and to restore critical inventory needs, like showroom and test drive vehicles. These cars may be what's left after meeting those obligations.
I don't understand why Elon is always so irritated when asked about raising capital. Perhaps he sees it as a sign of weakness, or outsiders telling him how to run his company? Or he just wants to prove the shorts that his company is self sustainable?
Last time it was "we can't rely on free cash and need to save on expenditures". This time is "we are spending as fast as we can but still swimming in cash". I think he has earned the credibility that his business model works with such positive cash flow so there's really no one criticizing him for tapping into raising capital for even more growth.
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