4 ms·
This is getting to be a mindless discussion so this'll be my last response on it >> Issue 100 million shares at 0.01 cents per share and go public. That's now
by drited 5y ago
This is getting to be a mindless discussion so this'll be my last response on it
>> Issue 100 million shares at 0.01 cents per share and go public. That's now a $10k dollar public company. Next, you do an increase in capital stock by selling 1 million additional shares at 0.5 dollars per share to gullible investors. See how that works and why public valuation based on share value isn't always the most useful tool in assessing a company's finances
Tesla's free float is worth over $453 billion and over $20 billion worth of stock trades each day. This isn't a penny stock whose illiquid float can be pushed around like that.
Regarding company finances, after its capital raise last year TSLA has a large cash balance. $17.4 billion at the most recent quarter end. A few hundred million from the bitcoin sale doesn't move the needle.
What matters when you're considering whether Musk would do this or not is whether it would be material to him. It wouldn't because most of his wealth is tied to the value of his stock, which in turn is tied to the market value of the company. The bitcoin profits made an impact of maybe a tiny fraction of a percent of the value of the company and his wealth. Not worth 5 minutes of his time over 3 months.
He updated his view to the correct one. Do you really want to be part of a lynch mob that makes it harder for public company CEOs to update their view to the correct one by coming out with tinfoil conspiracies to explain actions that were probably just the result of lack of attention?