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Tesla is past the cash raising phase though - they are massively profitable and actively retiring debt early. https://www.sec.gov/ix?doc=/Archives/edgar/data/1

Tesla is past the cash raising phase though - they are massively profitable and actively retiring debt early. https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017021000524/tsla-20210630.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/0000... "On July 16, 2021, we issued a notice of redemption to the holders of the 2025 Notes informing the holders that we will redeem the notes in full in August 2021 at a redemption price equal to 102.65% of outstanding principal amount, plus accrued and unpaid interest, if any."

csours 5y ago
They are raising money by selling stock.
perl4ever 5y ago
>Tesla is past the cash raising phase though It appears to me that they are steadily issuing stock at the rate of about 20% of their market cap per year, or roughly at the rate of $10 billion per month. It looks like the number of (diluted) shares outstanding increased by over 20% between 2019 and 2020. What did that consist of? Their annual report says mainly: - Issuance of common stock for equity incentive awards - Issuance of common stock in public offerings e.g. "On February 19, 2020, we completed a public offering of our common stock and issued a total of 15.2 million shares (as adjusted to give effect to the Stock Split, as described in the paragraph below), for total cash proceeds of $2.31 billion, net of underwriting discounts and offering costs of $28 million." "On September 1, 2020, we entered into an Equity Distribution Agreement with certain sales agents to sell $5.00 billion in shares of our common stock from time to time through an “at-the-market” offering program. Such sales were completed by September 4, 2020 and settled by September 9, 2020, with the sale of 11,141,562 shares of common stock resulting in gross proceeds of $5.00 billion and net proceeds of $4.97 billion, net of sales agents’ commissions of $25 million and other offering costs of $1 million." "On December 8, 2020, we entered into a separate Equity Distribution Agreement with certain sales agents to sell $5.00 billion in shares of our common stock from time to time through an “at-the-market” offering program. Such sales were completed by December 9, 2020 and settled by December 11, 2020, with the sale of 7,915,589 shares of common stock resulting in gross proceeds of $5.00 billion and net proceeds of $4.99 billion, net of sales agents’ commissions of $13 million and other offering costs of $1 million." Also, as of their 2020 annual report, roughly a billion shares were authorized to issue, which is on the order of another 100%, or double the current outstanding. https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/0001... You might dismiss this as "way back in 2020", but it does seem to be their latest annual report. Their latest quarterly report is as of June 30, 2021, and guess what? Shares outstanding are up about 4.6%. Compounded over a year, that's going to be just about 20% again. 10-Q: https://www.sec.gov/ix?doc=/Archives/edgar/data/131860 https://www.sec.gov/ix?doc=/Archives/edgar/data/131860 "Stock-based awards" seem to have been 93 million in the last three months. TSLA is around $775/share.
- panick21 5y ago
  Go look at how much of the raised money is simply cash reserve. There is a difference between raising money because you need to and wanting to raise to build up a cash reserves because you think the stock price is favorable.
- optimiz3 5y ago
  As you mentioned, TSLA's last public offering was in 2020. 2020 was a significant shift in the company as it became profitable ex-ZEV credits. Future public offerings are unlikely absent major changes in the company's fundamentals. Stock based comp is a standard cost of business in most large tech companies; given how badly TSLA is been beating competitors (esp in the context of the chip shortage), it seems to paying off.
  - perl4ever 5y ago
    >As you mentioned, TSLA's last public offering was in 2020. >Stock based comp is a standard cost of business in most large tech companies The public offerings come at intervals, but the total raised seems to be pretty steady. It all contributes to keeping the business running. Money is fungible. "Everybody does it" is not an argument for anything. Your opinion could be perfectly correct, in terms of predicting the future, and I am not an expert on Tesla. But your comment doesn't convey to be even the tiniest hint of why you hold your opinion.

csours 5y ago

They are raising money by selling stock.

perl4ever 5y ago

>Tesla is past the cash raising phase though It appears to me that they are steadily issuing stock at the rate of about 20% of their market cap per year, or roughly at the rate of $10 billion per month. It looks like the number of (diluted) shares outstanding increased by over 20% between 2019 and 2020. What did that consist of? Their annual report says mainly: - Issuance of common stock for equity incentive awards - Issuance of common stock in public offerings e.g. "On February 19, 2020, we completed a public offering of our common stock and issued a total of 15.2 million shares (as adjusted to give effect to the Stock Split, as described in the paragraph below), for total cash proceeds of $2.31 billion, net of underwriting discounts and offering costs of $28 million." "On September 1, 2020, we entered into an Equity Distribution Agreement with certain sales agents to sell $5.00 billion in shares of our common stock from time to time through an “at-the-market” offering program. Such sales were completed by September 4, 2020 and settled by September 9, 2020, with the sale of 11,141,562 shares of common stock resulting in gross proceeds of $5.00 billion and net proceeds of $4.97 billion, net of sales agents’ commissions of $25 million and other offering costs of $1 million." "On December 8, 2020, we entered into a separate Equity Distribution Agreement with certain sales agents to sell $5.00 billion in shares of our common stock from time to time through an “at-the-market” offering program. Such sales were completed by December 9, 2020 and settled by December 11, 2020, with the sale of 7,915,589 shares of common stock resulting in gross proceeds of $5.00 billion and net proceeds of $4.99 billion, net of sales agents’ commissions of $13 million and other offering costs of $1 million." Also, as of their 2020 annual report, roughly a billion shares were authorized to issue, which is on the order of another 100%, or double the current outstanding. https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/0001... You might dismiss this as "way back in 2020", but it does seem to be their latest annual report. Their latest quarterly report is as of June 30, 2021, and guess what? Shares outstanding are up about 4.6%. Compounded over a year, that's going to be just about 20% again. 10-Q: https://www.sec.gov/ix?doc=/Archives/edgar/data/131860 https://www.sec.gov/ix?doc=/Archives/edgar/data/131860 "Stock-based awards" seem to have been 93 million in the last three months. TSLA is around $775/share.

panick21 5y ago
Go look at how much of the raised money is simply cash reserve. There is a difference between raising money because you need to and wanting to raise to build up a cash reserves because you think the stock price is favorable.
optimiz3 5y ago
As you mentioned, TSLA's last public offering was in 2020. 2020 was a significant shift in the company as it became profitable ex-ZEV credits. Future public offerings are unlikely absent major changes in the company's fundamentals. Stock based comp is a standard cost of business in most large tech companies; given how badly TSLA is been beating competitors (esp in the context of the chip shortage), it seems to paying off.
- perl4ever 5y ago
  >As you mentioned, TSLA's last public offering was in 2020. >Stock based comp is a standard cost of business in most large tech companies The public offerings come at intervals, but the total raised seems to be pretty steady. It all contributes to keeping the business running. Money is fungible. "Everybody does it" is not an argument for anything. Your opinion could be perfectly correct, in terms of predicting the future, and I am not an expert on Tesla. But your comment doesn't convey to be even the tiniest hint of why you hold your opinion.