But they can issue shares for $320 in a regular equity raise. So if they need to pay that bond off with stock they can do it one way or the other. The exact price when the bond is due seems like a nonissue -- if they are still worth around 50 billion in market cap they have plenty of ways to get a measly billion in cash.

Bulls aren't going to abandon Tesla until the suicide pact has been completed

But why lay off 7% of staff while needing to massively ramp production, while tanking the stock price 6 weeks before a crucial convertible comes due, if they can just easily raise the billion in cash to cover if needed?

Maybe Elon will do his usual fraud in the next 6 weeks to desperately try and pump in the short term?

Ol’ Musky needs to get on his Twitter ASAP.

in his email he said they didnt lay off people from production

Why in the world would Musk be desperate to pump the stock price? If the stock is at $315 (54 billion market cap) or $360 (62 billion) it is trivial to get enough cash to cover the bond through an equity raise. Obviously it is more favorable the higher the stock price is but it's far from a disaster if the stock price is at $315 when the bond is due.

Why hasn't he raised via equity? Because apparently he CAN'T. the SEC settlement put extra burdens and disclosures on them. Why not sell more debt? Because Tesla bonds are trading lower than Pacific Gas & Electric bonds - which is days away from bankruptcy and the stock down 80%. There is no easy money for him to raise, even with the huge market cap.

If the growth story is over, and it seems to be (cutting employees, warning about Q4 and Q1, no money/fundraising for R&D), why on earth does this stock get a high multiple? It's a breakeven car company at best. The cult of musk is one thing but it seems absurdly overvalued with the stock at $315.

why didn't he raise X billion and started construction on one or more new factories one year ago?
that would atleast give them a reasonable path to grow within the next one or two years.

That's begging the question. You assume that Tesla would have raised by now so they can't raise. What's that based on? There's no evidence that the SEC is keeping them from raising. None. Zero.

Building a second factory when there are still huge problems and production issues in the current factory seems incredibly reckless? Seems quite prudent to iron out the issues with the current model 3 factory before pouring billions into a whole new factory.

So Grimes and Azalea Banks have been subpoena’d.

does it? he's promised the semi this and the model y next year (and raised money on those promises)

the way things are now, even on musks optimistic timeline (which every expert says is garbage) they might be able to start trial m3 production in china in one year - add a few more months until any meaningful output (see m3 production 'ramp'). with m3 asp dropping and subsidies going away there's next to zero growth here for the next ~1.5 years.

where's the semi being build? the model y? the roadster2?

funny side note - they owe people $20m worth of roadster2s for the referral program.
wonder if that is even being accounted for somewhere?
i don't want to be pwc.

You can't really say there's no evidence. It may not be definitive but his recent run ins with the SEC certainly indicate problems. He may, or may not, be able to raise money but it's far from certain that he can.

So rare to see that used properly.

I was going to give him props for the same thing. Best post in this thread.

Is this stuff still going on ?

Oh, well good thing they have so many surplus employees in customer support, service and repair, and reasearch and development.

Keeeeeeeeeeeeeeed.

Trivial!

What if the stock price is $250? $200? $150? When does the difference become material?

half thought this was a joke i didn't get or sth but realized it actually happened so here's an article about it in case anyone wants a read

Looks like my first major tranche of TSLA puts will die today. RIP.

No matter, still have Junes, Augs and Jan 2020s that will turn into long term cap gains if TSLA collapses by then. Each tranche would double my portfolio value by itself.

And closed again @ $305. Taking the win here, markets closed on Monday so happy to take it here on a big move.

Nice, I too closed out some of the puts I bought yesterday (for 158% profit) but letting the rest ride.

$8 billion in market cap incinerated today.

Over to Keeeeeeeeeeeeeeeed for comment:

"Trivial."

Lots of delusional Tesla bulls on twitter believing this is a good thing and a buying opportunity. I guess there were enough code words in there like "mission" "life on Earth" "the cause" etc to get their synapses firing.

Will be interesting to see which funds were dumping today.

There will always be losers and true believers who baghold to the bottom and buy after bankruptcy. This was enough however to gut even the semi sane bulls and particularly institutional holders who can read what Elon plainly told them - that profitability is dead and cannot be reached even with $60K ASP cars and growth killing cuts, that high end orders are soon used up, and that they have no viable path to profitability at even $45K cars