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Tesla Motors (TSLA) files a registration statement (S-3) with the SEC to boost the amount of...

Tesla Motors (TSLA) files a registration statement (S-3) with the SEC to boost the amount of common stock that it plans to offer to $225M from $150M.
Comments (21)
  • PANIC is setting in!
    28 Sep 2012, 07:24 AM Reply Like
  • It sure is. The shorts must be crying bitter tears. Not only was demand sufficient for Tesla to fill the offering at only 1% discount to market, there was so much additional demand that they could increase the offering by 50% and still maintain that negligible discount.

     

    Now they have a huge cash buffer to see them through the valley, and the price paid for it is roughly zero.

     

    A lousy outcome for shorts.
    28 Sep 2012, 08:08 AM Reply Like
  • a lousy outcome for previous stockholders who were sold the same scam.....
    28 Sep 2012, 08:25 AM Reply Like
  • How can you say that, TSLA is almost up nearly 100% from the IPO price
    28 Sep 2012, 08:46 AM Reply Like
  • @emburns
    Some people talk (write) just to hear their head talking. How can a capital rise at the market price that removes virtually any financial risk for quite some time be a bad thing? It also helps accelerating R&D and production ramp up. And "dilution" (you cannot dilute beer with whiskey) is at most 7%.
    28 Sep 2012, 09:07 AM Reply Like
  • so is this a bad thing? i have a very limited knowledge of the market.
    28 Sep 2012, 09:04 AM Reply Like
  • It's a good thing, which is why the stock is up on opening. Speculation among shorts was that Tesla would be forced to take financing at a significant discount to market price. They weren't, and now they have a huge cash reserve to get through the Model S ramp phase.
    28 Sep 2012, 09:41 AM Reply Like
  • Investorperson
    It is a good thing bad thing.
    Tesla was running out of money.
    If you are an investor (Stockholder or shareholder) in the company and Tesla had not raised money. They would have gone BK (bankrupt ) And you as a stockholder would have been wiped out.
    A Very Bad Thing.
    There are other ways of raising money but they all have bad things about them. The company looked at the possibilities and decided this was the best available option.
    The bad thing about this is there are more shares of Tesla.
    This is dilution. Meaning there are more people with parts of the company so each person gets less.
    However compared to BK it is a much better thing.

     

    There is another side of the issue.
    Assuming a company that was not going to go BK.
    There are reasons for a raise of capital.
    The company has more money and can do stuff with it.
    If the company spends the money wisely they can make more money faster and make up for the dilution (Added shares) This is a good thing.
    Possibly they can grow the company enough to make more money for each shareholder than they would otherwise. A very good thing.

     

    In Tesla's case they have money so they won't go BK (at least for a while) and they have money for equipment and R&D for future models. Hopefully for the shareholders they will spend it wisely.

     

    Short term no BK.
    Long term potential for being very good or not.

     

    Short term the market likes it, long term depends on Tesla's execution which, so far, has not met Tesla's lowered projections.
    2 Oct 2012, 03:14 PM Reply Like
  • I'm long TSLA and not panicking or upset in the least. This gives a nice bit of breathing room to counter the minor production delays. If they can't significantly improve production in Q4 then I'll panic.
    28 Sep 2012, 09:06 AM Reply Like
  • This seems like the right read.
    28 Sep 2012, 05:28 PM Reply Like
  • If Tesla is in trouble, no one will buy this additional stock offering. If they're not, investors will snap up an opportunity to get in on this new automobile company.

     

    Why be anxious? It's a win win.
    28 Sep 2012, 11:46 AM Reply Like
  • The ups and downs from TSLA make me unsure.
    28 Sep 2012, 05:15 PM Reply Like
  • There is nothing to tell about an old person with 79 years behind.
    28 Sep 2012, 05:33 PM Reply Like
  • TSLA ended UP on a down day with 4x volume. If that doesn't scream confidence, I don't know what is.
    29 Sep 2012, 12:34 AM Reply Like
  • Normaly a compagy like TSLA must go up with theire beautifull cars.
    29 Sep 2012, 12:14 PM Reply Like
  • If it were remotely that simple, 110% of the world population would be millionaires.
    29 Sep 2012, 03:13 PM Reply Like
  • I saw the last TSLA exposition. The car with the Falcon windows is realy a splendid car or not?
    29 Sep 2012, 03:18 PM Reply Like
  • I agree cars look nice and promising. But going from a concept car / prototype to large scale profits is one of the hardest journeys known to man :)

     

    And this is not an ordinary car. Nor the factory that should build it.
    29 Sep 2012, 04:24 PM Reply Like
  • Any dilution of a stock I own is troublesome. Each of us that buy stock are basically giving our money away with no strings attached. All for the promise that the stock price will climb and we will have the forsight to take a fair profit when we can. That being said, an additional 4.3 million shares represents a 4% dilution. This is relatively small; so I'm not worried about this. Mine and I'm sure most people's real concern is whether Tesla will be able to scale their production capacity. Personally, I think they will. But I say this with my fingers crossed.
    29 Sep 2012, 07:32 PM Reply Like
  • Remember that the fixed additional stock offering expires tomorrow Wed 3 Oct. I expect the stock to be diluted by 5% or more and stock price adjusted accordingly. This is historically how stock dilution works. So buy some $26 puts or avoid the stock like the plague.
    2 Oct 2012, 12:27 PM Reply Like
  • As leak in investments I don't know good to play with puts and calls
    7 Oct 2012, 04:49 PM Reply Like
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