5 ms·
This is true, but also it is true that financing via customer deposits is vastly cheaper than selling equity.
by runako 5y ago
This 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.