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Here we agree. I come across as a Tesla fanboy in these comments but I think Tesla's valuation is crazy high, too high, and I still think there's a chance they

Here we agree. I come across as a Tesla fanboy in these comments but I think Tesla's valuation is crazy high, too high, and I still think there's a chance they fail completely like so many other auto companies (a tough business). My theory is Musk knows the only way he'll be able to compete is attracting the best talent through stock incentives, and to do that he needs to jack up the stock price by pushing engineers way past what they are comfortable with. An underreported stat is the increase in TSLA outstanding shares, which I think is Elon throwing stock incentives at his employees to make them go faster, as a TPS alternative (for now?) https://ycharts.com/companies/TSLA/shares_outstanding https://ycharts.com/companies/TSLA/shares_outstanding

prostoalex 9y ago
The increase in shares was due to secondary offering https://www.fool.com/investing/2016/05/26/tesla-motors-maxed-out-its-secondary-offering.aspx https://www.fool.com/investing/2016/05/26/tesla-motors-maxed... Tesla’s stock behavior is due to the ongoing game of “who blinks first” between TSLA shorts and TSLA short-squeezers. With $10 billion short position the company’s fundamentals are reduced to a side show.
- carlivar 9y ago
  Your article only accounts for about 7.9 million new shares from the secondary offering, but many more have been issued. It's primarily from equity grants. Even your article says Musk tacked on his stock option exercise as part of the secondary offering, which increased the dilution.