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So much for their running out of money. Impressive that they can get it from the bond markets. Highlights maturity as a company.

• akvadrako 9y ago
  More likely it suggests they would have trouble selling that many new shares. Even Musk has said their share price is higher than they deserve, so selling shares makes more economic sense. But this amount will only cover their loses for a few months and they probably want to demonstrate their ability to make future profits before diluting their stock significantly. If they sell equity too quickly, it'll look like the stock is crashing and encourage even more selling. This is how Solar City floundered at the end - under crushing debt from junk bonds.
  • mathattack 9y ago
    Isn't debt harder to raise than equity? My impression is that the risk tolerance for junk bond buyers is somewhere between high grade credit and equity, perhaps closer to equity. Certainly more conservative than growth or venture equity. I'm the first to admit that I don't follow their specific financials to know how much runway they need to be profitable.
    • akvadrako 9y ago
      Normally, I would say that's the case, but Tesla stock isn't normal. When they sell debt, their stock price goes up. Debt has one big advantage over equity too, which is that if the company goes under, bond holders are repaid if possible. Equity holders only own whatever is leftover.