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Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for
by jernfrost 10y ago
Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla?
Why push for high stock prices if it gives little benefits.
Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not taken electric self driving cars seriousness will be eradicated like Black Berry and Nokia.
- mikeash 10y agoThey just raised about $1 billion a couple of weeks ago, which they said they didn't strictly need for the Model 3 but would be nice to have. They're not shy about taking advantage of their valuation.
- deleted 10y ago[deleted]
- deleted 10y ago[deleted]
- spectistcles 10y agoThat's an interesting comparison — we could very well end up in a market where existing manufacturers catch up and vastly outsell Tesla in the long-run (Android), and Tesla ends up as a very successful luxury model (iOS).
- jernfrost 10y agoAndroid was not an established player either though. So we had a situation where new entrants like Apple and Google both destroyed the established players like Nokia, Black Berry, Windows Phone, Siemens, Sony-Ericcson etc. There might very well be another electric car maker upending the market, but really I think Tesla has quite a number of years head start now. Building and planning something like the Giga factory took many years. A competitor will not be able to reproduce that in a couple of years. Tesla also sits with years of experience designing batteries now. They have a competency advantage over the established players who mainly know how to make a fossils fuel engine. Each year passing that becomes useless and dead knowledge. They also lack the software development skills of Tesla. They have mostly bought that from vendors. Tesla thus sits with expertise in the key areas for the future of automobile while the competition is very weak in these areas. I predict a bloodbath. 10 years from now I think Tesla will be quite big and the established players struggling hard to hang on.
- stale2002 10y agoHigh stock prices, by definition mean that it is easy for Tesla to raise money. It is the price that Tesla can sell new stock for.