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> Musk can raise a couple of billion whenever he wants This is true, until it isn't. Moody's just downgraded their bonds, and their stock just hit another low.
by daxorid 9y ago
> Musk can raise a couple of billion whenever he wants
This is true, until it isn't. Moody's just downgraded their bonds, and their stock just hit another low. Whether Musk goes to the debt markets or the equity markets to raise, the price just got much more expensive.
And at some point, these downward spirals feed on themselves. We saw this in 2007-2009 when banks badly in need of raising capital couldn't even do so because the mere announcement of intention to raise spooked the markets (either more debt or more dilution) so much that the price of doing so was prohibitive.
TSLA does have one strong tailwind, though: the short interest in the stock has become so great that it's nearly impossible to find shares to borrow anymore. And there's always the risk of a very large short squeeze.
- wellboy 9y agoYes, but not right now or in 3 months like that managers says it. This is just spreading unsubstantiated FUD.