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Assuming he is buying newly-issued shares from Tesla, then the money goes directly into their treasury. So, the company will have $20MM more in cash than it did
by URSpider94 8y ago
Assuming he is buying newly-issued shares from Tesla, then the money goes directly into their treasury. So, the company will have $20MM more in cash than it did the day before.
- RhodesianHunter 8y agoAnd all existing shareholders will be diluted by the issuance of those shares.
- peeters 8y agoThe shares would lose value via dilution or via a new $20 million debt, this is just an easy way to get the cash on hand.
- nathanvanfleet 8y agoHe is still getting something out of that transaction. That's like saying buying food at a restaurant is a donation.
- manquer 8y agoIt will cost the company 20 million yes but will not affect the free cash flows
- Phenomenit 8y agoIf it's newly issued the price will be dilution of the other shareholders stock. I guess it's a smallest burden on Elon and the rest of the shareholders.
- cpuguy83 8y agoI'm no finance person, lawyer, or anything like that. But I suspect that he can't just give Tesla money and it has to be in exchange for something, such as stock.