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> distributing that which caused the stock price to dip. Tesla has a definitive loss. How did a stock price dip cause a loss to Tesla?
by bildung 8y ago
> distributing that which caused the stock price to dip. Tesla has a definitive loss.
How did a stock price dip cause a loss to Tesla?
- deleted 8y ago[deleted]
- thebluehawk 8y agoFor starters, it affects how easily they could raise cash by borrowing money, during a time when they desperately needed capitol.
- microtherion 8y agoThe problem with that legal theory is that Musk insisted at that time that Tesla did NOT plan to raise capital: https://www.cnbc.com/2018/05/02/tesla-ceo-elon-musk-continues-to-say-he-has-no-plans-to-raise-capital.html https://www.cnbc.com/2018/05/02/tesla-ceo-elon-musk-continue...
- eduah 8y agoSaying you do not plan to do something, does not mean that you won't change your mind if circumstances change in the future
- DSingularity 8y agoPerhaps that was decided because it was costly?
- deleted 8y ago[deleted]
- blueboo 8y agoso for starters it's some unquantifiable handwavey opportunity cost
- onetimemanytime 8y agoStock price caused Tesla be valued less. Bonds, stock options, add more collateral to cover loans, sold to cover loans....? But apparently Tesla was valued less because of these actions at that time.
- cbanek 8y agoTesla also have some convertible bonds out there that can be converted to stock if the stock price is above a certain number, but otherwise I think Tesla has to pay it back in cash. https://www.cnbc.com/2018/08/08/elon-musks-tesla-stock-boost-may-lower-financial-pressures-for-the-ca.html https://www.cnbc.com/2018/08/08/elon-musks-tesla-stock-boost...