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common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: NewtonMP2100
Date: February 13, 2020 01:41PM
.....$2b stock offering......stock initially went down on the news but recovering.....


Tesla shares jump 6% to session high, reversing early losses following $2 billion stock offering

Tesla announced on Thursday it plans to offer $2 billion of common stock.

CEO Elon Musk will buy as much as $10 million of stock in this offering, while board member Larry Ellison will also purchase up to $1 million.

The move comes two weeks after Musk declared that Tesla did not plan to raise any more capital.

....Tesla plans a $2 billion common stock offering, an announcement coming just two weeks after CEO Elon Musk said the electric carmaker would not take advantage of its surging stock price to raise more capital.

Shares of Tesla initially fell after the announcement, dropping as much as 6% in premarket trading. But the stock reversed those losses, climbing 6% in the middle of the day as analysts and investors cheered the move as a way to shore up its balance sheet and possibly further its expansion plans. Shares hit a high of $818 in intraday trading.

Musk himself will buy as much as $10 million of stock in the offering, while Tesla board member Larry Ellison will purchase up to $1 million. The company will offer 2.65 million Tesla shares through underwriters Goldman Sachs and Morgan Stanley, with expected gross proceeds of $2.3 billion before discounts and expenses.

Tesla said it plans to use the proceeds “to further strengthen its balance sheet, as well as for general corporate purposes.”

Wedbush analyst Dan Ives praised the announcement, telling CNBC’s “Squawk Box” that it will be even more difficult for Wall Street skeptics of Tesla to make their case.

“It’s a smart, strategic move. It takes any doomsday scenario around cash crunch ... off the table,” Ives said.

The stock previously closed at $767.29. But the stock is still well ahead of where it was as recently as December. Tesla stock has climbed about 120% and 225% in the past three months and six months, respectively. Earlier this month Tesla reached $968.99.

Traders had speculated that Tesla may use the recent run-up in the stock as an opportunity to raise funds by selling more shares to the public. The sudden jump in the stock raised concerns it had become a speculative bubble driven by a short squeeze and had become detached from fundamentals.

Two weeks ago Musk declared that Tesla did not plan to raise any more capital because it was “spending money, I think, efficiently, and we’re not artificially limiting our progress.”

“It doesn’t make sense to raise money because we expect to generate cash despite this growth level,” Musk said.

Musk’s sentiment was echoed by CFO Zachary Kirkhorn during the company’s fourth-quarter earnings report. But the company has quite a number large expenses in the year ahead, such as new factories in Shanghai and Berlin and heavy investment in self-driving and battery technologies.

New Street analyst Pierre Ferragu said in a note Thursday that Tesla’s latest stock offering was “unexpected but sensible.”

“That is a move we were not expecting, as we see the current balance sheet as strong already, but we cannot disagree current valuation is a good place to consider strengthening it further,” Ferragu said.

Also Thursday, Warren Buffett partner Charlie Munger expressed skepticism about Tesla’s recent high price. “I would never buy it and I would never sell it short,” he said. “I think Elon Musk is peculiar and he may overestimate himself, but he may not be wrong all the time.”

The company announced a secondary offering of stock and bonds in May that weighed on the stock. The shares were trading around $244 at the time and fell to $176.99 in the next month as investors worried about the increase in share supply and the company’s financial standing.



more.........money.........?!



_____________________________________

I reject your reality and substitute my own!



Edited 4 time(s). Last edit at 02/13/2020 01:45PM by NewtonMP2100.
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: Paul F.
Date: February 13, 2020 10:27PM
Just watched a guy on YouTube break this down...
It's about a 1.5% dilution of shares, so, not significant in that respect.
And, it gives them a lot of capital for another Gigafactory (Next one is probably going to go in Texas... probably a battery plant, along side a Model Y line?).

The next few years are going to be very interesting for Tesla....



Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: Rolando
Date: February 13, 2020 11:21PM
The model Y is gonna be a huge seller. I just wish it looked better. I wish they would have Mazda style their cars.



San Antonio, TX (in the old city)


"All that is required for evil to prevail is for good men to do nothing." - Edmund Burke
“Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." - Eli Weisel

"To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public." - Theodore Roosevelt (1918)

"I don’t want to see religious bigotry in any form. It would disturb me if there was a wedding between the religious fundamentalists and the political right. The hard right has no interest in religion except to manipulate it." - Billy Graham 1981

"Politics and governing demand compromise. But these Christians believe they are acting in the name of God, so they can't and won't compromise" - Barry Goldwater
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: mikebw
Date: February 14, 2020 09:37AM
Quote
Rolando
I wish they would have Mazda style their cars.

I would guess that Mazda does not share that wish.
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: sekker
Date: February 14, 2020 10:47AM
Quote
Rolando
The model Y is gonna be a huge seller. I just wish it looked better. I wish they would have Mazda style their cars.

We are on the queue for a Y. We think it looks fine!
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: sekker
Date: February 14, 2020 10:48AM
Quote
Paul F.
Just watched a guy on YouTube break this down...
It's about a 1.5% dilution of shares, so, not significant in that respect.
And, it gives them a lot of capital for another Gigafactory (Next one is probably going to go in Texas... probably a battery plant, along side a Model Y line?).

The next few years are going to be very interesting for Tesla....

Elon is so gun-shy that he is not ready to think more normally. Any other company, this stock offering would RAISE the valuation.
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Re: common knowledge?!.....Telsa plans to raise more money by issuing more common stock.....
Posted by: Rolando
Date: February 16, 2020 10:30AM
Quote
sekker
Quote
Rolando
The model Y is gonna be a huge seller. I just wish it looked better. I wish they would have Mazda style their cars.

We are on the queue for a Y. We think it looks fine!

Fine. Just fine. The Mazda 3, 6, CX30 and CX5 CX9 are the best looking vehicles in their class (In my opinion)



San Antonio, TX (in the old city)


"All that is required for evil to prevail is for good men to do nothing." - Edmund Burke
“Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." - Eli Weisel

"To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public." - Theodore Roosevelt (1918)

"I don’t want to see religious bigotry in any form. It would disturb me if there was a wedding between the religious fundamentalists and the political right. The hard right has no interest in religion except to manipulate it." - Billy Graham 1981

"Politics and governing demand compromise. But these Christians believe they are acting in the name of God, so they can't and won't compromise" - Barry Goldwater
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