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I can assure you Tesla doesn't need this kind of a credit to raise money, they could probably get a sweet $50B via a simple ATM equity offering. And incidentall
by H8crilA 5y ago
I can assure you Tesla doesn't need this kind of a credit to raise money, they could probably get a sweet $50B via a simple ATM equity offering. And incidentally it would be a similar set of people that would lay down the money.
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- runako 5y agoThis is true, but also it is true that financing via customer deposits is vastly cheaper than selling equity.
- belltaco 5y agoFinancing the first ever production models costing $50K each with $100? Just the fixed costs of design and building the factories must cost billions.
- runako 5y agoThey are also allowed to sell equity if they discover the need to do so. But preorders allow them to a) offer somewhat less equity and b) do so at a higher price due to the PR value of >1mm preorders. The pre-orders appear to have significantly reduced the cost of capital for the Cybertruck.
- gopalv 5y ago> simple ATM equity offering There's no equity being offered here, there's no upside on offer at all beyond getting a truck. This money isn't revenue, it is merely a pre-payment towards an NRE for building a car. The best take is that it looks a lot like a Kickstarter style "proof of a market" without actually selling anything but the promise to build the thing everyone's interested in.
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- dopamean 5y agoSomething tells me Elon does not want Tesla to issue more shares.
- H8crilA 5y agoThey issued shares twice in the past year. They issue shares (or in the past also debt) approximately every year.