Tesla: Files to sell $2B worth of shares

That is the indicator of the pathological liar. They believe their own lies. I’ve known a few in my life. They are pretty scary people.

Many politicians have this trait.

I went through this as an investor in Sprint years ago. After initial significant gains, they kept issuing new shares and diluting existing shareholders with impunity. It was always to “raise capital for more expansion”.

It was very frustrating for me.

For long term value investors,like you, hanera & wuqjuan, read the 225 pages book “Seth Klarman’s Margin of Safety 1st Edition 1991 edition”. This has only 5000 copies in circulation and very expensive to buy. However, you can get the pdf over internet.

Worth reading and worth watching his videos in youtube. He is one of the successful Hedge Fund manager shared his experience in that book, you will see how investing world works.

TSLA has been tumbling since the SpaceX rocket explodes.

Any comments from TSLA aficionado?

SpaceX is not the reason, but SCTY merger is a big issue. Additional shares dilution may bring the share price. You know I sold it, my decision is right. It may go down further. It may take years for TSLA to come back.

They are all financially co-mingled. Plus, Elon has personal loans based on the value of his stake in the companies.

SpaceX news

Elon is taking too much risk and too much debt. What would happen when he is not a Wall Street darling any more?

Amazon has been operating at a paper loss but it never needed to dilute or take debt. Amazon managed to grow up under tons of skepticism. Tesla got too much love from Wall Street, Elon might have underestimated the future difficulties

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Elon is doing good for the humanity. Not sure if he’s doing the right thing for his shareholders


If TSLA goes to the equity markets for capital this year… it’s bad for existing equity holders.

Except it has never worked that way. Elon has some reality distortion field going.

aah :slight_smile:… keep going Mr.Musk…

That’s only true if there are profits. When you’re losing money, then the loss per share gets smaller :slight_smile:

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True. Based on below, I hope the income story starts turning by year end at least for these 3 models S, X & 3 (assuming immediate capital spending on these 3 models will come down).

It also announced that it expected to begin generating “positive quarterly income on a sustained basis” in 2018.

Of course the new models(like Model Y & semi & roadster) will require more capital going forward.

I’m not a blind optimist for any company(I bought TSLA at 65 and sold at 165 when model 3 was far far away and bought again recently because Model 3 looks like a great vehicle, & I’m hoping now that the execution will be taken care of by the management going forward)


During a conference call following the released of the company’s financial results today, Musk said that Tesla will start capital investments for Model Y, which generally means investing in production, by the end of 2018.

He also added that production plans with a location will be unveiled in the next 3 to 6 months – hinting at a possible new factory for the vehicle.

That was later reinforced in the call when Musk said that Tesla is planning a significant increase in manufacturing efficiency from Model 3 to Model Y, which could result in a production capacity of 1 million units per year for a smaller investment than the Model 3’s planned production of 500,000 units per year, according to Musk.

He added that he is “pretty excited about the Model Y manufacturing” and how they plan to “avoid all the pain that they went through with Model 3 production ramp up.”


They should focus on model 3, since they made <1,500 units over 3 months. That’s an annual rate of 6,000/yr, and he’s talking about 1,000,000/yr? He must do some good drugs at those sex parties.

He’s signaling their cash burn will increase, and they’ll have to raise more capital. The price of debt is increasing quickly. Sounds like they will do a share offering this year.

At some point, they’ll have to do a design refresh of the model S too.

He’s talking about 5000/week end of Q2, that’s @250K of Model 3.

Initial Model 3 mass production dates were 2020. Tesla itself brought it forward to mid 2017-2018. Yeah… CEO’s always are salesman to a degree… so they do set ambitious targets. They will slip but hopefully will reach it, BEFORE the big guys catch em.

Elon said in his earnings call that their big competitive advantage is the Factory. I’m assuming his point is when they fix all the production issues the factory will be very efficient & not easy to copy?? by others without significant time or investment.

Weren’t they supposed to hit 5,000/wk in Q3 of last year? I wonder how much of the pull in was due to needing to raise cash, because they announced it then immediately raised money. I think it’d have been much harder to raise money if production wasn’t until 2020.

I struggle to believe they’ll beat Toyota, Honda, and Nissan at manufacturing cars. They might have a head start at the battery packs, but those are supposedly the bottleneck in model 3 production. Anyone can design a line with an amazing rate in theory. Actually running the line at the theoretical rate is totally different.

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