I was thinking in the long run it will be more like Betamax.

18 days ago musk says no need to raise cash, today announce raising 2b, I don’t fault it given stock price


Also K is out

$5 billion in cash claimed on the balance sheet, permanently profitable going forward. Also, I can has $2 billion to strengthen the balance sheet and "general corporate purchases"?

Tesla is a fraud, selling fake promises to gullible morons and then using that to fund its losing operations. Case in point: Electrek (Tesla mouth piece) yesterday is claiming that 9K made in China for the quarter would be great, and 15K next quarter would be a big ramp. But Tesla's head of Chinese operations claimed in December that Tesla was running at 1K/week and imminently ramping to 3K/week. In reality there was zero local production, just some hand test assembly of imported parts. That pure deliberate fraud/lie was part of the reason the stock kept climbing.

I think this is my favorite bit of theater though:

The slappies will get excited on this meaningless news ("Ellison believe in the stock!"), but this is 1/100th of what he invested in Theranos.

Ellison buying 1m, quite a ringing endorsement

6b on balance sheet

It's such great PR, as is Musk's meaningless $10 million buy. The bulls and paid-PR news mouthpieces lead with this ("Elon and Larry buying more stock!") when they announce the secondary

Should have raised 10 billion. The tiny purchase amounts for EM and LE are hilarious.

Musk wants cash basically because he wants to get a shiny new toy.

Petafactory 1 that's literally its own city, 1920s Ford style with company stores and housing?

Maybe he'll just acquire GE and go all in on all renewable generation methods.

Or he'll use the money to buy the Boring Company and dump the cash into a giant Boring machine to build an entirely new subway line in NYC.

Expect a prototype for a $25k model around October.

He wants cash because the company is not going to be CF+ once operating expenses return to somewhat normal levels. They've basically cut all customer service over the past year to get to these cash flow numbers. That's obviously not sustainable. They have to A) service existing debt B) build a new factory C) continue operating.

COVID-19 is actually somewhat of a blessing because it gives them some plausible deniability on why they need cash.

Yeah, it's absurd looking at the newly out 10K and seeing operating costs 300m below 2018, almost at 2017 levels when they sold and made far fewer cars.

Is this evidence of a horrid Q1 like last year?

Strong evidence and strong arguments, and the China/SE Asia situation adds to it. It's also a global or even Asian continued coronavirus bet - semi-luxury stuff gets hit hard in recessions.

I've started a June 2020 and Jan 2021 put position just now, a range of them in the 300-400 area. Will be adding in the coming days.

Quoted for posterity

Is he paying off debt? Asking for posterity

I mean, probably? He certainly didn't say he wasn't going to pay off debt with some of the proceeds

Ok, so you don't know and are just baiting, for posterity. Thanks.

What do you think he's going to use the $ for?

Despite recent filings, Tesla burns cash.

For all I care he wants to buy toilet paper. You're the one implying it is somehow bad, show your work.

Assuming he doesn't believe that Tesla is fcf+ moving forward

Obviously raising is the correct play at these valuations ($2B isn't nearly enough) but if you're bullish at these valuations and believe the nonsense about being cashflow positive and not needing to raise (as Elon was saying 2 weeks ago) you should see the raise as terrible news.

The fact that Elon is diluting himself rather than buying a proportional amount of the offering like he normally would is telling imo.

Don't forget Larry Ellison in for a cool million.

uhh dont you WANT to raise cash when you are getting overvaluated???

what am I missing? you all would do the same thing in his pos

Yeah, literally just so the headlines can say Elon and Larry buying more stock.

If the Tesla bulls were capable of thought beyond level 0 that would never work, but here we are +5%...