Author Topic: TSLA - Tesla Motors  (Read 583854 times)

DTEJD1997

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Re: TSLA - Tesla Motors
« Reply #2790 on: March 13, 2019, 01:46:14 PM »
I'm biased bearish but not currently involved. One key question for me is that there is a question re: the company's cash position. Given the $50 billion market cap, is it not reasonable to assume the company could raise even $3 or $4 billion in an equity offering?

I think it is perfectly reasonable that TSLA could raise a couple or few billion (or even more), probably very easily.

The question is how much of a hit the common would take.

Secondarily, I think it would also matter how the equity raise is spun.  If it is for new factory or tool & die for new model...probably better than just "we need it to pay the bills!".




A Dhandho Investor

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Re: TSLA - Tesla Motors
« Reply #2791 on: March 14, 2019, 08:10:10 AM »
Musk has mortgaged his 5 houses in the context of the December 2018 capital raise at SpaceX (if I remember well they only raised 250m instead of 750m).
The fact that that capital raise was a big disappointment seems an indication that Musk currently has difficulties in raising capital. In January 2019, the news
came that SpaceX was laying off personnel. Sounds familiar with the Tesla story?

Why would Tesla take the following measures instead of simply raising capital (either via debt or equity):
- Capital expenditures have dropped to a level that is barely enough to cover depreciation and amortisation in Q4
- there have been multiple rounds of layoffs since December
- Decision to close all stores and move to online only (which has been reversed in the mean time, after Tesla's ABL was increased by 500m)

In addition to that, I can guarantee that if Tesla raises 5 billion tomorrow, the common will take no hit:
- shares outstanding have nearly doubled since the IPO, shareholders never could have cared less
- there is quarterly stock based compensation of 200m, shareholders never could have cared less
- Tesla acquired Maxwell in a stock based deal, shareholders never could have cared less
- Tesla acquired assets from a trucking company in a stock based deal, shareholders never could have cared less

Btw, have you ever seen a 50 billion dollar company issue stock to buy a 250m company or to buy 15m worth of material (the trucking assets)? It more and more seems that the almost 4 billion cash at the end of Q4 was pure window dressing.



Liberty

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Re: TSLA - Tesla Motors
« Reply #2792 on: March 14, 2019, 08:19:53 AM »
December 2018 was pretty bad timing for a capital raise, though. I wonder if they'd do better now that that moment of generalized panic is over. I don't know the answer, just asking the question.
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Liberty

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Re: TSLA - Tesla Motors
« Reply #2793 on: March 14, 2019, 11:54:18 AM »
No Toyota Motors thread, so I'll put this here. Interesting read about a flexible line that Toyota built, goes over a lot of the challenges with car manufacturing and increasing throughput:

http://www.thedrive.com/tech/26955/inside-toyotas-takaoka-2-line-the-most-flexible-line-in-the-world
"Most haystacks don't even have a needle." |  I'm on Twitter  | The importance of saying 'oops'

A Dhandho Investor

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Re: TSLA - Tesla Motors
« Reply #2794 on: March 18, 2019, 03:07:28 AM »

fareastwarriors

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Re: TSLA - Tesla Motors
« Reply #2795 on: March 18, 2019, 01:38:20 PM »
Placed order for a red LR AWD Model Y.

Hope Telsa is still in business by then.  :P

Haasje

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Re: TSLA - Tesla Motors
« Reply #2796 on: March 18, 2019, 02:14:43 PM »
With a deposit? :o

fareastwarriors

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Re: TSLA - Tesla Motors
« Reply #2797 on: March 19, 2019, 01:33:10 PM »
Yes, $2,500.

I guess it's not called a deposit anymore, but a "pre-order payment."

 :o

https://electrek.co/2019/03/15/tesla-model-y-cash-grab/

cherzeca

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Re: TSLA - Tesla Motors
« Reply #2798 on: March 19, 2019, 04:11:43 PM »
Yes, $2,500.

I guess it's not called a deposit anymore, but a "pre-order payment."

 :o

https://electrek.co/2019/03/15/tesla-model-y-cash-grab/

well, I would rather be an unsecured creditor than a shareholder...

fareastwarriors

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Re: TSLA - Tesla Motors
« Reply #2799 on: March 19, 2019, 04:28:00 PM »
Yes, $2,500.

I guess it's not called a deposit anymore, but a "pre-order payment."

 :o

https://electrek.co/2019/03/15/tesla-model-y-cash-grab/

well, I would rather be an unsecured creditor than a shareholder...

I'm both... :'(