Tesla – the stock exchange punishes the company

By no means a spectacular Tesla stand at Intersolar, but still of great interest
By no means a spectacular Tesla stand at Intersolar, but still of great interest

Firstly, all Tesla shops should be closed, because it would be easier to sell the vehicles via the Internet, then some showrooms should remain, because firstly, Tesla would like to continue to be present in important locations (big cities) and secondly, Tesla would not be able to get out of long-term rental agreements without paying a penalty.

Such a report doesn’t really belong in public, but Elon Musk is very special.

Then the new SUV model Y was introduced, which will only be delivered sometime in 2020. Analysts from various investment banks have expressed criticism that this new model could compete with the Model 3, since some Model 3 pre-orderers are now switching to the Model Y. After all, there is little difference in price, but the Model Y is even more appealing in terms of features/optics. Unfortunately, there are no exact numbers of how many Model 3 pre-orders are still available.

It was well known that Tesla urgently needed new capital, especially as a convertible bond in March reduced cash holdings by over US$ 920 million and almost half of the remaining US$ 2.2 billion was due to advance payments. A good US$ 2.7 billion in fresh capital now flowed into the account: 3.55 million new shares were issued for US$ 243 each, and a new convertible bond (Senior Notes, maturity 2024) in the amount of US$ 1.84 billion with a 2% coupon was purchased. Elon Musk himself used US$ 25 million himself to participate in the capital increase. But be careful: This is a clever manoeuvre to build trust. On the other hand, he pledged 13.4 million shares for personal loans. This is supposed to be an amount of 500 million to 1 billion US dollars – without any commitment – so that the 25 million US dollars are rather symbolic like peanuts.

It is interesting to note that very many media (print and TV) regard this US$ 25 million as a very important positive argument. Musk has reached his goal, chapeau. Meanwhile, Elon Musk’s next mistake immediately followed, as he considers the US$ 2.7 billion to be sufficient for only ten months and a savings program will be started.

read more in H2-international July 2019

Author: written by Sven Jösting, May 24, 2019

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