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They used stock issuance to repay their government loan and the only headlines the public saw was "Tesla repays government loan early!" leaving stock price a ne
by stevievee 8y ago
They used stock issuance to repay their government loan and the only headlines the public saw was "Tesla repays government loan early!" leaving stock price a net gain after the issuance
- hinkley 8y agoThere was a time when half of Microsoft's net profits came from stock dilution. They were issuing new shares for employee stock option grants, so the strike price went into revenue every time options were exercised. The schadenfreude crowd was waiting and hoping for MS to make a big misstep. Any slip in profit would reduce their P/E, and if the stock price leveled off they would get hit again when option exercises declined, taking them negative (fewer new employees also equals less stock revenue). As one person put it, they were a bicycle. Stable while moving but would fall over as soon as they stopped. But I got bored of following MS long before those supposed hens came home to roost so I have no clue what really happened.
- slededit 8y agoThe price leveled out, the last few years of employee options expired out of the money. New employees got stock grants instead and the stock was stagnant in a narrow range for a decade.