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It's only insanely expensive relative to the financing cost structure of traditional companies. If you view Tesla as a high growth tech startup, with an insanel
by chaolam 9y ago
It's only insanely expensive relative to the financing cost structure of traditional companies. If you view Tesla as a high growth tech startup, with an insanely cheap way to raise capital, you can say they are spending very little money to generate such high revenue growth rates, especially compared to say Uber.
- Someone 9y agoInsanely cheap? They had to borrow money (as opposed to selling shares) at 5.3% interest last year. Those bonds currently trade at about 5.9% interest (https://www.bondsupermart.com/main/bond-info/bond-factsheet/USU8810LAA18 https://www.bondsupermart.com/main/bond-info/bond-factsheet/...) If they need more money, they would either need a very good story, or pay more interest (“Production pushed back again” is not “a very good story”) Tesla is a stock that may bring big profits, but that is not without risk.