For a long long time, Tesla bears have been grinning and dry washing their hands over potential liquidity issues at the company. On Twitter, these people identify themselves with the $TSLAQ moniker. This morning, TSLA and their ~$50b market cap and went to market to raise $2 billion.
Tesla formally announces offerings of $650 mln of common stock and $1.35 bln aggregate principal amount of convertible senior notes due in 2024 in concurrent underwritten registered public offerings (234.01)
The aggregate gross proceeds of the offerings, assuming full exercise by the underwriters of their option to purchase additional securities, would be approximately $2.3 billion before discounts and expenses. Tesla intends to use the net proceeds from the offerings to further strengthen its balance sheet, as well as for general corporate purposes.
Question for bears: how could you not see this happening?
In all previous offerings, Elon Musk has purchased shares. During this one, he bought 42,000 shares valued at $10 million. Back in 2013, Musk bought $100 million worth of stock in an $830 million offering — which was the pivot point for bulls and set the stock on the fucking war path higher.
The stock is up 5% on this news.
If you haven’t watched this video in full yet, I implore you to. Stunning. $TSLA $TSLAQ pic.twitter.com/ID7YhBPEXU
— Quoth the Raven (@QTRResearch) May 1, 2019
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Musk mentioned a new car insurance program on recent earnings call. Starting and running an insurance company requires very high levels of unrestricted capital. He basically laid it on a silver platter. Fairly surprised no talking head had mentioned this.
This is the orchestrated buying of overpriced stocks
by the institutions, in order to suck people into
the worthless IPO’s now flooding the market.
The day of reckoning of this grossly overpriced market
is coming soon, to a theater near you.
Tesla, the man and futurist, would be embarrassed that his good name is attached to this POS company.
https://www.youtube.com/watch?v=A0FZIwabctw
Btw- if spontaneous combustion of parked unattended Tesla has significant statistical probability, they will need insurance company. Parking garage is one thing, home garage with family of five sleeping is another.
Btw #2. Ongoing CMG, now CDC warning. Will it every occur to Americans to leave the chicken bird alone? There’s plenty of other good things to eat.
Best regards
Question for Bulls: have you seen a YTD plot of TSLA stock?
Maybe $TSLAX is a better moniker, as the stock can quickly flush out the excess cash buildup in your trading account. Still on the way to $200.
Musk is more like Tesla than Edison. Both brilliant inventors, but one of them had ideas that didn’t make any financial sense (long distance wireless power: way too much obvious energy loss to be efficient).
Actually, $180 is the target, but don’t know about the timing
The end game in transportation is this. Your car takes you to work, goes off and charges itself, spends the afternoon Ubering around, then picks you up and takes you home. It then Ubers around some more, recharges itself, then picks you up to take you back to work again.
How does one invest in this? Tesla is doing a lot of the heavy lifting but that doesn’t mean much this early. Will the real money be made in vehicles, software, energy filling stations (where are the majors?), batteries, electronics, infrastructure?
I am surprised Toyota hasn’t moved more aggressively into this space. They have the resources and the corporate culture is not afraid of long term thinking.
Like most Asian companies, Toyota is conservative. It’s not a question of long-term thinking, becuae the problem isn’t technology. The problem is liability and and unknown regulatory envirnoment.
This is also why Musk wants to get into insurance: no one will insure a car in untested full autonomous mode. The only ones that know the real risks are the Tesla and Musk, which have become notorious for being lia…excuse me, “optimists.” Then you have the marketing saying “Autodrive” while in reality it is “be ready to take the wheel within 3 seconds or you’re dead”:
https://www.tesla.com/blog/update-last-week%E2%80%99s-accident
Tesla said that Walter Huang (the driver) ignored the car’s warnings to retake control. The family says he wouldn’t do that. However, the Huangs brother also claims (which Tesla disputes):
“7-10 times the car would swivel toward that same exact barrier during Autopilot. Walter took it into dealership addressing the issue, but they couldn’t duplicate it there.”
So basically if you beleive Tesla:
1) Driver’s fault, because he ignored the warnings
If you believe the Huang family
1) Tesla’s fault, because the driver the software is faulty and did have his hands on the wheel. More importantly ***Huang intentionly engaged Autopilot during a situation that he knew was very dangerous*** Sounds like either suicide by robot or reckless driving.
The real victim is the families of the other two vehicle’s that Walter Huang’s Tesla hit after the barrier.