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• The company launches a roughly-$2B secondary, with $1.4B being offered by Tesla (NASDAQ:TSLA) and the rest being sold by Elon Musk to cover the taxes on his concurrent exercise of more than 5.5M stock options.
• Proceeds (from Tesla's sale) will be used to accelerate the ramp of the Model 3.
• As for the CEO, the company notes the transactions will have the effect of increasing Musk's stake in Tesla.
• Source: Press Release
• Goldman Sachs and Morgan Stanley are the lead underwriters. Goldman's upgrade this morning helped send Tesla*higher by 3.2%*in the regular session.
• Shares are lower by 2%*after hours.
 

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Yes complete and total shock. Not that the need for cash had anything to do with the concept reveal of the Model 3. :) And Goldman Sachs is handling the offering. Just by coincidence it upgraded Tesla stock today.
 

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Is Musk positioning himself for a big cash out when selling-off the company to Apple, Google, the Chinese?

Just by coincidence it upgraded Tesla stock today.
Pump and dump
 

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If I were controlling Apple, Google, or the Chinese, I would be creating a new corporation that builds hybrid plug-ins for the SUV AWD market that is most of the population with whom I associate despite my desire to own an efficient vehicle.
 

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If I were controlling Apple, Google, or the Chinese, I would be creating a new corporation that builds hybrid plug-ins for the SUV AWD market that is most of the population with whom I associate despite my desire to own an efficient vehicle.
Since I still own, use, and love, my Jeep I have to agree.

However if someone is going to create such a thing there had better be a version that can truly do about 45-50 miles at 5mph or lower over rough terrain (which in gasoline terms means about a 230 mile "street" range) because there sure aren't any charging stations out where I go and "the group" has had to loan/borrow gas from each other before which would be a little hard to do with battery packs.
 

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• The company launches a roughly-$2B secondary, with $1.4B being offered by Tesla (NASDAQ:TSLA) and the rest being sold by Elon Musk to cover the taxes on his concurrent exercise of more than 5.5M stock options.
I don’t think it is surprising they would seek capital to launch a new model. I am sure people also thought Henry Ford was crazy for setting up his factory. Nobody had ever done something like that before. It worked out fine for him. This one might crash and burn or it might be a big success. Time will tell.
 

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So this should help answer those that keep asking how Tesla's going to get to a 500k unit/year production by 2018.
Everyone knew they would have to ask for money to even think about getting the Model 3 to market. I still don't think this gets them close to the 500k/year. I think this amount was a low ball number. Most people were expecting between $2 - $4 billion. Also, the 2018 date isn't just about the amount of money either. Tesla is talking about building 80-90k cars this year. Increasing that number by 400k in a year wouldn't be easy for even the largest automakers. There are so many variables to doing that I don't even think Musk has even thought about it practically. Also with only 373k orders they don't have to build 500k/year. If I was Tesla I would focus on about 200k/year which might be sustainable.
 

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Geez let me understand, Tesla is taking cash and building factories, charging stations, stores and service centers around the world -- hard assets with cash value.

And that is bad?
 

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Geez let me understand, Tesla is taking cash and building factories, charging stations, stores and service centers around the world -- hard assets with cash value.

And that is bad?
Yes, let's all join U5% and point and laugh at the stupid decisions Tesla Motors is making by actually doing everything a massively growing company should be doing. LOLOLOL!!!
 

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Geez let me understand, Tesla is taking cash and building factories, charging stations, stores and service centers around the world -- hard assets with cash value.

And that is bad?
Tesla's charging stations don't produce revenue; they're a liability. Constructed buildings are just floor space at prevailing market rates.

Tesla is either a revolutionary new business model for vertically integrated automotive manufacturing or yet another speculative bubble. It could go either way.
 

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Tesla's charging stations don't produce revenue; they're a liability. Constructed buildings are just floor space at prevailing market rates.

Tesla is either a revolutionary new business model for vertically integrated automotive manufacturing or yet another speculative bubble. It could go either way.
They produce quite a bit of revenue since they are a massive value add that gets people (like myself) to buy the car. Without that ever-growing charging infrastructure, I wouldn't have purchased the car. There's no way I would have relied solely upon CHAdeMO, CCS, or L2 stations to get me all over the country.
 

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Discussion Starter #13 (Edited)
I don’t think it is surprising they would seek capital to launch a new model. I am sure people also thought Henry Ford was crazy for setting up his factory. Nobody had ever done something like that before. It worked out fine for him. This one might crash and burn or it might be a big success. Time will tell.
At their current and continued cash burn...this will get them to the beginning of next year when they will ask for MORE money...:rolleyes:

Also, this sentence is quite interesting...
We intend to use the net proceeds from this offering to accelerate the production ramp of Model 3. We intend to start volume production and deliveries of Model 3 in late 2017 and to accelerate our 500,000 vehicle build plan from 2020 to 2018. We may also use a portion of the net proceeds from this offering for working capital and other general corporate purposes.

From this document...
http://www.sec.gov/Archives/edgar/data/1318605/000119312516594471/d185970d424b5.htm
 

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At their current and continued cash burn...this will get them to the beginning of next year when they will ask for MORE money...:rolleyes:

Also, this sentence is quite interesting...
We intend to use the net proceeds from this offering to accelerate the production ramp of Model 3. We intend to start volume production and deliveries of Model 3 in late 2017 and to accelerate our 500,000 vehicle build plan from 2020 to 2018. We may also use a portion of the net proceeds from this offering for working capital and other general corporate purposes.

From this document...
http://www.sec.gov/Archives/edgar/data/1318605/000119312516594471/d185970d424b5.htm
As Tesla Motors volume goes up, the losses climb about linear to sales.

Unless something actually changes, not just in the bookkeeping, by the time March 31, 2017 comes around, they will need another larger influx of cash.

This cash will just keep the current Model S and X losses in check as production increases.
 

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Discussion Starter #15
I love that Elon Musk said Tesla would never ever need another funding round in 2012 but here we are again.

Tesla has reached $8.2 billion dollars in liabilities!!
https://ycharts.com/companies/TSLA/liabilities

Note for the financial novice : Liabilities are stuff you have to pay back.
 

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I love that Elon Musk said Tesla would never ever need another funding round in 2012 but here we are again.

Tesla has reached $8.2 billion dollars in liabilities!!
https://ycharts.com/companies/TSLA/liabilities

Note for the financial novice : Liabilities are stuff you have to pay back.
They also didn't anticipate ~400k reservations for the Model 3. In case you're not paying attention, this extra money will be used to build out factories to ramp up production to meet this unforeseen demand. Should they have spent the money on a time machine so they could know this? It takes money to make money, and NO other car company let along NO other company has ever done this before. How can you sit there and assume they are making wrong decisions when you're on the other end of a keyboard and Tesla is actually THE car company making the investments and producing the cars? What beef do you have with Tesla, Paul? Why the non-stop bashing and FUD?
 

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Discussion Starter #17
They also didn't anticipate ~400k reservations for the Model 3. In case you're not paying attention, this extra money will be used to build out factories to ramp up production to meet this unforeseen demand. Should they have spent the money on a time machine so they could know this? It takes money to make money, and NO other car company let along NO other company has ever done this before. How can you sit there and assume they are making wrong decisions when you're on the other end of a keyboard and Tesla is actually THE car company making the investments and producing the cars? What beef do you have with Tesla, Paul? Why the non-stop bashing and FUD?
How can I be bashing if I am citing Tesla's own documents and public information about the Tesla from Wall Street...I am just putting out information rather than the unsupported speculations of the Tesla fanboys

I think Musk is going to need about $15B more to do the things he wants to do...if he and Tesla were to come out and state reality...there would be no "bashing", because the "narrative" would NOT be constantly changing...I'm concerned that the hype he has generated could become a backlash against all EV products if things go really sideways...:(
 

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Good to see you casting a positive light on Telsa, Paul.. well done....
 

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As Tesla Motors volume goes up, the losses climb about linear to sales.

Unless something actually changes, not just in the bookkeeping, by the time March 31, 2017 comes around, they will need another larger influx of cash.

This cash will just keep the current Model S and X losses in check as production increases.
How can I be bashing if I am citing Tesla's own documents and public information about the Tesla from Wall Street...I am just putting out information rather than the unsupported speculations of the Tesla fanboys
Sounds like Tesla is becoming its own financial bubble.
 

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