jawagord wrote:Tesla takes advantage of those buying into the bubble.
Tesla has priced its secondary common stock offering at $767, a 4.6% discount from Thursday’s share price close, according to a securities filing Friday.
Tesla said in the filing it will sell 2.65 million shares at that discounted price to raise more than $2 billion. Lead underwriters Goldman Sachs and Morgan Stanley have the option to buy an additional 397,500 shares in the offering.https://techcrunch.com/2020/02/14/tesla ... per-share/
The only thing surprising to me is that they didn't try to raise, say $5 billion while the stock is hot and the dilution effect small (relatively speaking).
Either way, the more cash they can raise, the longer they can stay in business and/or grow faster.
Now over time, the real question is how their high priced cars with relatively low quality overall (looking at repair rates, not fanboi emotional claims) do, as the real competition starts to emerge in force over the next couple of years (and even more so after that).
Tesla can obviously sell into the preening luxury class who care more about things like acceleration than reliability. Whether they can do well in the middle class where things like convenience and durability and cost really matter will be far more interesting.
Given that Musk has now moved HIS definition of FSD (full self driving) for the promised 2019 "FSD feature complete" (which isn't ready yet) from TRUE FSD to meaning literally nothing, so much for the claims of a giant true FSD Tesla robo-taxi fleet in 2020 -- or IMO, in the next decade or more.
https://www.cnet.com/roadshow/news/tesl ... all-recap/According to Musk's definition, a feature-complete FSD system would have a non-zero chance of getting you from your home to your place of business without intervention.
Think about the GALL of this guy. The industry defines FSD as the car reliably driving itself without any need for human oversight. (Below level 5, if the car decides it can't handle the situation (like bad weather), it has to safely pull over and notify the driver). But THIS guy, to keep the fantasy of Tesla and FSD alive, so he can sell it for $thousands per car, has it as driver paying full attention, hands on the wheel at all times, ready to take over at any moment. AND the odds that the car can get you from home to work without human intervention (i.e. preventing crashes) are so low, he has to call them "nonzero". I call that the human driving the car -- oh, and the human is 100% legally responsible for ANY mishaps with a Tesla.
For anyone but Musk, calling that "FSD" would be fraud.
Of course, real world, re the state of Tesla robotic driving, given the absolutely PITIFUL performance of the "smart summon" feature at sub 5 mph speeds, this (nonzero chance) of success is at least a statement in the ballpark of reality, vs. Musk's other Tesla FSD claims thus far.
So it's going to be about selling cars, not science fiction fantasy stories. Outfits like Uber are making good progress toward FSD -- but only in small and strictly geofenced areas like parts of Tempe AZ.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.