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The clock is ticking for Tesla Motors (TSLA -0.4%) as it sees its government loan tapped out and...

The clock is ticking for Tesla Motors (TSLA -0.4%) as it sees its government loan tapped out and shareholders unlikely to back new stock offerings. The company holds on to $133M of deposits for customers waiting for Model S deliveries, but relying on future deposits could get tricky if production slows. Also, by the end of October the Department of Energy wants a repayment plan from Tesla for its outstanding loan. Will the rave Model S reviews fire up even more enthusiastic buyers to plop down deposits?
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Comments (11)
  • Nick Butcher
    , contributor
    Comments (806) | Send Message
     
    "Shareholders unlikely to back new stock offerings"

     

    Given the stock offering proposed represents a dilution of under 5% to quadruple the minimum cash position between now and profitability, I can only assume that by 'shareholders' you mean 'short sellers'.
    26 Sep 2012, 10:55 AM Reply Like
  • JRP3
    , contributor
    Comments (8072) | Send Message
     
    I was thinking the same. What is it that Petersen likes to say?
    "You don't dilute a beer by adding a shot of whiskey" ;)
    27 Sep 2012, 08:53 AM Reply Like
  • Nick Butcher
    , contributor
    Comments (806) | Send Message
     
    I didn't see him say that but have no trouble believing he did. Probably in reference to AXPW. And probably when they received their last $10mil at a 10% discount to the 40 day average of the market price.

     

    I don't think it's appropriate here either though - basically Tesla are diluting beer by adding a shot of beer... the exact alcohol content of the added beer currently unknown but unlikely to be significantly different from the existing bottle. They just happen to be doing so at a time when having a little more beer is a very good idea.

     

    Have to wait until the financing round is closed before making any definitive statements though.
    27 Sep 2012, 09:03 AM Reply Like
  • Vico Confino
    , contributor
    Comments (212) | Send Message
     
    I will celebrate my eightieth birthday in March 2013.
    My astrological sign is Pisces.........a dreamer.
    Question:
    Have Daimler, Toyota, Panasonic been selling their shares?
    Please advise.
    Vico
    26 Sep 2012, 10:57 AM Reply Like
  • Yuro
    , contributor
    Comments (139) | Send Message
     
    Payback of the loan is already accounted for and covered. The fact that they are going slow and getting it right at this stage should be encouraging to both stock-holders and prospective buyers. I've driven a Model S. Went from skeptic to Tesla booster in the space of a week because of that drive. I've got a reservation in and I'm keeping it. This alert is just a re-wording of previous alerts.

     

    Go Tesla!
    26 Sep 2012, 11:02 AM Reply Like
  • wallstjoe
    , contributor
    Comments (26) | Send Message
     
    They need the new money to PAY THE SUPPLIERS on which they are far behind and therefor can't get parts.
    26 Sep 2012, 11:09 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Site your source.
    26 Sep 2012, 11:59 AM Reply Like
  • FOHC Resources
    , contributor
    Comments (514) | Send Message
     
    Wall, sorry that is total speculation. The actual reason is because the current ratio was going below what was agreed to in the gov loan, thus an infusion is needed to stay above that ratio. Additionally it is good for them to have the extra cash, so they may have done an offering anyway.
    26 Sep 2012, 12:56 PM Reply Like
  • wallstjoe
    , contributor
    Comments (26) | Send Message
     
    And now increasing the offering by 50%?????????????
    28 Sep 2012, 08:36 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1144) | Send Message
     
    If they don't raise the money to ensure their solvency then it will be a catch 22 - people will hesitate to buy a car from a company that could go into "bankruptcy". This will slow down sales at a time when sales need to pick up.

     

    Definitely bad PR for a product at this pricepoint.

     

    I can't see how the shareholders have much choice in the matter.

     

    Good luck if you are a shareholder here.
    26 Sep 2012, 11:17 AM Reply Like
  • 123man
    , contributor
    Comments (1124) | Send Message
     
    Innovation is never easy - it wasn't for Henry Ford - perhaps if everyone had shorted Henry we wouldn't have the massive "OIL" problem we have today - like Vico I am long on Tesla and await delivery of my Model S - this decision is not blinded by my pocket book, rather it is driven by the desire to leave a better place for my grandchildren - perhaps this is too complicated for some to understand - make a little sacrifice for the betterment of humanity, some of whom you are surely related to - Vico, perhaps we will meet at a Tesla event - went to the Supercharger unveiling, now expect to be able to drive to Vegas or the Oregon border for free - photons excepted - remember this also - the bottom line is what drove (pun intended) us into the catastrophe of 2007-2008
    26 Sep 2012, 12:55 PM Reply Like
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