Tesla: Files to sell $2B worth of shares

They’re claiming it is to “accelerate” model 3 production. Truth is there’d be no model 3 production without raising cash. They needed to do this to have any shot at shipping the car next year. I predict they’ll need to raise another $2B+ to get capacity to 500,000 vehicles a year. I guess dilution is good when you’re losing money. The loss per share gets better :smile:

http://finance.yahoo.com/news/tesla-files-2b-stock-sale-203453161.html

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Musk is a con man. Didn’t he say, on record, Tesla won’t need to raise money? Like only couple weeks ago?

I don’t expect to see Model 3 before 2020, if that. They don’t even have the final design done yet.

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“About $1.4 billion of shares will be sold by the Palo Alto company (NASDAQ:TSLA), and the rest will be sold by CEO Elon Musk. His part of the sale is being done to cover taxes he will owe after exercising more than 5.5 million stock options.”

So Tesla will only raise 1.4B, not the full 2B.

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I don’t think it’s a coincidence they took reservations for model 3 before they announced the need to raise capital.

Elon’s Model 3 reminds me of his hyperloop…People want to believe and he lays out enough bs for them to believe. …His own religion. …Elon is part messiah, part Trump and part Jobs…definitely an interesting character.

https://quid.com/insights/hyperloop

[Tesla Motors, run by Elon Musk, offers to buy SolarCity — whose chairman is Elon Musk] (http://www.latimes.com/business/autos/la-fi-hy-tesla-solarcity-20160621-snap-story.html)
:smile:

Tesla Motors Inc. said Tuesday that it has made an offer to buy SolarCity Corp., a $2.8-billion deal that would unite two Bay Area companies funded and driven by Los Angeles billionaire Elon Musk.

The offer to buy the rooftop solar giant is an extension of Tesla Motors’ sustainability mission, the electric car maker said.

“It’s now time to complete the picture,” Tesla said in a blog post. “Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun.”

Under the proposal, Tesla would acquire outstanding shares of SolarCity in exchange for Tesla common shares at a value of $26.50 to $28.50 per share, a 21% to 30% premium over SolarCity’s Tuesday closing price.

TSLA stock down by 13% afterhours! & SCTY uppppp!.
From one pocket to another, I hope TSLA board is doing it’s duties honestly, OTHERWISE this & share dilution(with new offering) & TSLA shareholders are screwed.

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Time for JIL to buy TSLA.

Jil would be better off buying the S model
…great car, lousy stock

Yes, Musk screwed the TSLA investors…He is crooked Musk, giving 30% premium to its own SCTY investors…He will learn a lesson when his stocks are dumped.

On any case, I was out of TSLA, but made appx $800 during this volatility in single day.

Someone highlighted the financial risk of his co-mingling of all 3 companies. :slight_smile:

He’s never run a profitable company. His first company was only acquired, because paypal needed a banking ID number. It was faster to acquire Musk’s company than get a new number issued. They let him run paypal, and he was fired in <1 year. I have no idea why he received so much credit for the success of paypal when his contribution as the banking ID number. People compare him to Jobs which is a joke. Next was Jobs worst company and even it became profitable.

I wonder what would be the future rationale for Tesla to buy SpaceX? That Tesla cars need rocket engines?? :smile:

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JLL,

Any change of heart given,

Benefits of Solarcity acquisition:

  • Vertically integrated company in energy production, energy storage, electric vehicle production
  • Solarcity to be cash flow positive in 3-6 months regardless of the buyout, not a user of cash
  • 30-40% lower sales costs for solar products, potential to sell 35.000$ worth of energy products with every Model 3 sale
  • Massive improvement in efficiency and cost of solar due to Silevo, upcoming products having such great aesthetics that they’ll increase the value of your house, difference like night and day to today’s solar panels

http://finance.yahoo.com/news/jim-chanos-shreds-shameful-tesla-161941370.html

Tesla market cap is down by more than the $8B they are paying to acquire Solar City. I guess the market has spoken on this one. What’s even crazier is Tesla is burning cash at a high rate. Now they are buying a company that’s also burning cash at a high rate. They are literally throwing gas on the fire.

If Solar City was going to be cash flow positive in 3-6 months, then why are its bonds yielding 20%? Investors clearly think the default risk is high.

I’ll give Musk credit. He is the master of over-hyping future products and giving ridiculously optimistic forecasts. When he fails to achieve them, then he just doubles down by increasing future forecasts even more. People seem to eat it up. Has Tesla every achieved it’s vehicle delivery forecast? Every quarter it’s a different excuse. Then they shorten the timeline for 500,000 vehicles a year by 2 years. Why on earth would anyone believe that when they fall short every quarter?

But people do. Thus the genius of Musk.

I wish I had that kind of mojo. People would just throw money at me to invest in my ideas even if I never delivered on my promises.

As I said previously, I am not fond of TESLA (or AAPL or GOOGL) unless it gives benefit as an investor. Tesla has good product and demand. Elon is taking over sick company (both are his companies) and giving 30% premium price using TSLA stocks. It is no way beneficial to TSLA stock holders.

Even though he has 28% and 23% stakes, he excuses out of voting to avoid conflict of interest. BY default SCTY share holders approve the deal (as they get 30% premium). TSLA holders are very likely agree too. How? Majority holding (other than Elon) is institutions and those will have stake both in TSLA and SCTY. Since they are getting 30% premium for SCTY, institutions (banks/mutuals) agree and vote. Common TSLA investors will be loosing money.

One hand you have 32 Billion (TSLA) and another end 2 Billion (SCTY). He takes 3 Billion from TSLA and gives to SCTY. I really do not see any benefit except Elon is making use of Craziness of TSLA stock price to compensate SCTY.

With current status, I really see TSLA will not be back to $250 in near future, at least 2-3 years.

As Marcus said “He’s never run a profitable company”, I do not see TSLA coming with profitability in near future even after rolling out Model 3 on the road.

Anyway, this is Billionaire game.

To my level, I just made small profit:

Having seen yesterday, stock drop to $192 level, I purchased 100 stocks, after market knowing that the stock goes up today morning. Right I speculated, I sold it today at 202 without even waiting further. I just took the benefit of volatility.

True to his color, Elon Musk is doubling down, yet again!

Defending himself against criticism of his offer to buy slumping SolarCity, Tesla Motors CEO Elon Musk is doubling down, saying the solar panel company is a key piece to Tesla becoming a $1 trillion company.

Yeah right. Dream on!

http://www.bizjournals.com/sanfrancisco/blog/techflash/2016/06/elon-musk-solarcity-trillion-dollar-company-tsla.html

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Elon is the Trump of tech…Lies to everyone, including himself…

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Both are increasing their network and net-worth at the expense of common people:laughing:

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I have no idea why he received so much credit for the success of paypal when his contribution as the banking ID number._

When MS “licensed” DOS to IBM, they didn’t actually have the right to do so either. They had to go buy DOS from the inventor who was an acquaintance of theirs. And yet, history identifies them as geniuses for inventing DOS.

Have you ever seen the old John Wayne/Jimmy Stewart movie “The Man Who Shot Liberty Valance”? There’s a message in there.

“When the legend becomes fact, print the legend.”