Tesla’s Tried-And-True Method For Raising Funds Works Again

Elon Musk Tesla Semi reveal event

DEC 3 2017 BY STEVEN LOVEDAY 56

Tesla Roadster

New Tesla Roadster at the Tesla Semi reveal event.

Honestly, with Tesla, it’s all about the hype.

What can we say … it works. Tesla doesn’t do anything like a traditional automaker. Although Musk continues to successfully utilize a tried-and-true form of financing to get through the company’s early stages and current Model 3 “production hell.”

It comes as no surprise that some Tesla skeptics have referred to Musk’s ways as a Ponzi scheme. However, it’s not as if the automaker hasn’t actually delivered vehicles. It just tends to struggle with timelines. Thus far — at least for the most part — the popular CEO has delivered on most of his promises. Doubters seem surprised when he’s able to pull off his crazy ideas, but he does it, albeit slowly.

Tesla Semi

Musk reveals the company’s 500 mile Semi this week

The recent Tesla Semi event was just another example of how the company takes people’s deposits way ahead of time to generate a nice pile of funds, with a promise to deliver the products years later. The thing is, people are willing to pay and wait. The number of customers eager to give Tesla their money for a product that’s not even in production (and may not be for years) is staggering. The company is well aware of this and banks on it, literally.

Not only are corporations dropping large deposits ($5,000) on the automaker’s electric semi, customers have already started placing deposits of as much as $50,000-$250,000 for the all-new second-generation Tesla Roadster (which wasn’t even previously announced to be a part of the Tesla Semi event). The surprise factor surely upped the ante for Tesla.

These vehicles won’t even go into production until 2019 0r 2020, and judging by Tesla’s track record, it could be even later. People that aren’t throwing money at the Silicon Valley automaker, along with some analysts and journalists are skeptical of Musk’s business tactics. However, if people are willing to pay and wait, and Tesla promises to eventually deliver, there’s really no harm done, right? If you don’t trust the situation, don’t pay in. KeyBanc Capital Markets analyst, Brad Erickson, told clients after the recent event:

“Elon Musk just figured out a way to avoid banker fees for a several hundred million dollar capital raise. [The Roadster] looked incredible and should be a meaningful force to raise some incremental capital for the company.” 

David Kudla, CEO of Mainstay Capital Management, sees it differently:

Tesla Model 3

These new product announcements come during a time that Tesla is struggling to fill about 500,000 paid reservations for the Model 3.

“Here’s another event to wow the audience while he’s struggling to build the Model 3. The Roadster is beautiful and the technology is extremely impressive. But we have to look at the business overall. When will he make money?”

Cowen and Co. analyst, Jeffrey Osborne, shared in a recent report:

“All last night’s event did was add to Elon Musk’s shopping list of things he needs to spend money on at a time when the company is having difficulty making its base vehicle (Model 3) and its equity and debt has traded off.”

Time will tell whether or not Musk and company can pull all of this off and come out on the other side as a truly successful automaker. At this point, it’s “whatever works.”

Source: Automotive News

Categories: Tesla

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56 Comments on "Tesla’s Tried-And-True Method For Raising Funds Works Again"

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Should be noted, before the Semi’s MSRP was released the reversation price was $5000…Then after the MSRP was announced the revelation increased to $20k…It would make the most sense that there was more semi demand than anticipated…

Even 1000 trucks at $20,000 is $20 million, that is not exactly “raising money” that is taking deposits.

I think the critics have a point with the Roadster, esp. when one adds Friday’s Space Oddity announcement to the mix.

Given Tesla’s planned magnitude in 2020, the Roadster will not be a serious revenue generator for the company. So it’s mostly a hype generator.

By contrast, the Semi is really huge on the practical bread-and-butter level. If this pans out, Tesla may have at least a half-decade lead time on all other truck makers outside of China.
And considering the far higher operating costs for diesel semis, the price is arguably lower than the price the Model S was launched with, relatively speaking.

“…the Semi is really huge on the practical bread-and-butter level.”

Potentially, but we won’t know if the Tesla Semi Truck is going to sell until it gets real-world testing by various trucking fleets, who will be closely examining how well the trucks perform on a long-term economic basis. It’s going to be at least a few years, and possible several, until the result of the cost/benefit analysis of using Tesla’s trucks becomes clear.

Fortunately, with continually falling prices for batteries, the cost/benefit ratio is going to continually shift in Tesla’s favor. Even if the economics of the situation don’t favor Tesla’s trucks in the first few years, it’s almost guaranteed they will do so eventually.

The cost-benefit analysis in Europe for a Tesla semi is that it pays itself in less than 2 years.

They don’t have to sell a single on in the US if they don’t want to and still have massive demand and being production constrained for a decade.

Good point. And as I understand it, Tesla can also omit the side mirrors in favor of video cameras, which is illegal in the USA.

Go Tesla!

The economics work better in Europe but the design doesn’t. Europe limits combined truck+trailer length, so semis with long noses don’t sell.

It also doesn’t make sense to build trucks in Nevada and ship them to Europe. They need a Euro-specific design and a European factory.

Total Cost of Ownership matters to truck fleet owners, Tesla roadster owners might not care.

The strategy behind he Roadster is nothing new, even for legacy automakers.

A huge part of Tesla’s allure is not just EV leadership, but also the image of cutting edge technology and performance. They can’t sit around on the 2016 P100D or it’s autopilot lead and expect that image to remain forever. The Roadster is the next step.

Porsche’s bread and butter is the Cayenne and Macan, but it still “wastes” money on developing the 911 Turbo S, 918, etc. They too need the tech/perf image.

And speaking of Porsche, it will be a big statement when the Roadster clobbers the Mission E at the track in 2020.

I understand that, in my books it mostly falls under “hype”.

Also, the comparison to Porsche is not very relevant. Porsche makes only luxury cars, and last year it set a new sales record which is still under 250k cars.

Tesla wants to crash into the mainstream, and possibly sell a million cars in 2019. Surely more than half a million.

Add semis and other trucks to the mix – likely planned to be high volume as well – and the Roadster becomes literally a drop in the bucket.

If Tesla’s grand plans pan out, at some point the Roadster might become purely a vanity project that loses them money. But right now, yeah as the article says the hype is a good fundraising agent 🙂

The proper word isn’t “hype”, it is “Halo”.

Having high performance halo cars is a cornerstone of the automotive industry. You could call the Ford GT a “hype” car too, but it is really a “Halo” car. And you are somewhat right, in a sens that ALL halos cars exist to hype the brand.

The beautiful thing for EV fans is that it isn’t just a halo car for Tesla. It is a halo car for all EV’s, because it is going to out-perform ICE hyper-cars that cost much more, and yet you will still be able to drive it like the calmest Leaf on the road (assuming they put Chill mode in it). Then put it into plaid and blow by everybody when you want to.

It is going to make it so if you want the fastest car (or even the fastest car poster on your wall), you have to buy electric. That just helps crush and kill once and for all the old meme that EV’s were just golf carts for nerds and… well… other worse derogatory names that petrol heads call folks like you and I.

You have to be careful with saying out perform because there are many dimensions to that. If you mean drag racing – sure. If it’s on a actual track – I don’t know. Is Tesla going to take it to Nürburgring to get the fastest lap time? I guarantee Porsche is with the Mission E.

Roadster2 will be designed for the track. Tesla talks about track features like thrust vectoring. The huge battery is also for the track.

The whole ‘ring thing really sticks in their craw. Roadster2 is the answer. It will need active aero features, though, which the prototype lacked.

It is true that Musk breaks practically every rule of Wall St., yet many (myself included) still believe. I’m such an enthusiast that I think the man sh$$S ice cream. STILL, I warn against betting your life savings on what still is a risk. I do often offer this analogy: Based on the rules of Wall Street, why would you ever give money to the Cancer Society, or the Kidney Foundation, especially given their slow response to solving their respective diseases? We do it, not to increase our personal investments, but because we know it will better our species. For those who refuse to accept that certain asymmetric compound gases when exposed to infrared radiation trap heat that is completely measurable with off-the-shelf technology, then I move on to the pulmonologist and cardiologist that tell us that burning of fossil fuel allows certain particulate matter to enter our bloodstream and shorten our lives. I would argue that this man’s company is doing more to eliminate these causes than the Cancer Society or the Kidney Foundation are doing to eliminate theirs. So even if they go bust, they have already advanced the much-needed technology. And hey, there is a small chance… Read more »

“For those who refuse to accept that certain asymmetric compound gases when exposed to infrared radiation trap heat that is completely measurable with off-the-shelf technology, then I move on to the pulmonologist and cardiologist”

Man o man. That’s heavy:)

wow.
One of the best posts I’ve read in a LONG LONG time.

@M Hovis; Hear here!!

I wonder if there is any risks involved in these down payments. Is a refund guaranteed if Tesla folds? If not, probably smarter to invest the money in the stock instead. My reasoning: if the truck and Roadster really make it to the production stage that means Tesla made it through production hell and is in the money and so are you with stock prices at even crazier levels.

Anyway, if rich people want to give Tesla free loans to be repaid in product (Roadster) at some unknown point in the future I would consider that a great way to help the planet.

In case of Tesla there are no any default guarantees whatsoever. The deposits are spent immediately and not put into some dedicated deposit account. These lenders would be on the same foot as any unsecured lender, i.e. they would get nil.

Just as with any Ponzi scheme, you can believe and expect for a miracle to happen together with others who “are willing to pay and wait”. As usual it works until it doesn’t.

“The deposits are spent immediately and not put into some dedicated deposit account.”

That’s how US social security system works, yet that’s been “working” for over 70 years. Unlike SS, Tesla will make products, just as they have done with all their other cars. Sure, they will be late and could take 70 years (hopefully sooner), but they will deliver.

Not really a good comparison. The U.S. economy makes plenty of things, too. Not to mention the population also makes a steady supply of new people through procreation.

Government doesn’t “make” anything. The best they do is to spend other people’s money instead of wasting. There are some things that must be spent with public funds, such as enforcement of private property, but vast majority of the rest are waste.

This is why SS is a pyramid scheme and was designed as such. As long as there are younger workers to replace the old, it “works”, because the gov’t doesn’t “make” anything.

yeah, can’t really take a troll’s word for that.

another kl?wn komment from zzzzzzzzzz: “Just as with any Ponzi scheme, you can believe and expect for a miracle to happen together with others who “are willing to pay and wait”. As usual it works until it doesn’t.” The term “Ponzi scheme” is being misused a lot in Tesla hater posts, so let’s remind everyone of what it actually means. The definition per Google: Pon·zi scheme noun a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. ~~~~~~~~~~~~~~~~~~~~~~~ So how is Tesla different? 1. Tesla isn’t a “nonexistent enterprise”. Tesla is making and selling very real, very popular, highly rated cars, as well as other very real products such as energy storage systems, solar panels, and solar roof tiles. 2. A Ponzi scheme will inevitably collapse because each successive generation (or “level”) of investors can only profit if the next generation of investors is much larger… thus the alternative label for a Ponzi scheme of “multi-level marketing scheme”. Eventually this inevitably fails because the number of people in the world is not infinite, and at some point the… Read more »
The thing is, you can lose money in the stock market even when it’s not a Ponzi scheme. A company doesn’t have to go bankrupt for you to lose money. Investors in tech stocks in 1999 were underwater for a long time. Some stocks still haven’t returned to their previous highs. People who invested in Tesla 5 years ago have done well. But at current prices, going forward it’s really doubtful it’s a good investment. At some point the company has to make money and be valued based on that. As Benjamin Graham said: in the short run the stock market is a voting machine, but in the long run it’s a weighing machine. A stock can fly high based on enthusiasm, but eventually it comes down to dollars and cents. Here’s a comparison of Tesla to Ford and GM in terms of market cap, vehicle production and income: http://www.businessinsider.com/tesla-value-vs-ford-gm-chart-2017-4 The problem with Tesla’s stock is that its market cap is already as large as other established auto manufacturer, yet the other auto manufacturers are already profitable, while Tesla racks up billions in loses. But even looking beyond that, let’s say that they eventually build out and start producing cars.… Read more »

“People who invested in Tesla 5 years ago have done well. But at current prices, going forward it’s really doubtful it’s a good investment.”

Sure. I wasn’t advocating buying stock in Tesla. Most analysts say Tesla’s stock price is significantly inflated, and has been for years. At best it’s a risky investment. (But shorting Tesla stock is even riskier, and nearly guaranteed to lose you money if you stay in long-term!)

Tesla stock already has Model 3 full launch baked into the price, so it indeed is not priced based upon trailing quarterly numbers from prior quarters. This really isn’t that odd. Stock prices often have future events baked into the price long before the events actually happen. And yes, sometimes the price drops on the news that a new product launch is even wildly successful, because so many people bet (bought) on it being wildly successful that they all tried to take profits on news of the success. The only real question is how much of the future Tesla semi success is baked in? Model Y success? Roadster success? Pickup truck success? Etc. Anybody trying to buy Tesla based upon prior quarter numbers is like the guy showing up at the starting line after the race has already started. Like I said, all stocks are subject to this. Buying a stock is a bet on the future value, not a bet on past valuations. What a company did in the last quarter doesn’t predict the future any more than looking in your rear view mirror tells you if you are about to run into a car in front of you.… Read more »

That definition is not correct. Many Ponzis are layered on top of actual businesses. Real estate Ponzis are a good example, almost all own actual real estate. Even Charles Ponzi himself bought some actual postal reply coupons.

Tesla isn’t a Ponzi, though, because they don’t pay investors.

Chris, The deposit is indeed put into the general funds and used for operations, just as was done with Model S and Model X reservations. It is not held in escrow. From Tesla’s paperwork: “We will not hold your Reservation Payment separately or in an escrow or trust fund or pay any interest on Reservation Payments, except to the extent required by law.” But that is not the same as saying you would be put at the same level as unsecured debt holders in a debt reorganization. That is because even under reorganization bankruptcy it is possible to get your deposit back as part of normal day-to-day operations in full PRIOR to the reorganization haircut that unsecured debt holder would suffer. As long as you request your deposit back prior to the bankruptcy being finalized by the courts, you would be ahead of the unsecured debt holders. If you left your reservation in place, it could be subject to modification under the bankruptcy ruling. This is all because the reservation is NOT the same as a debt, like a bond holder. When under reorganization, bond payments and stock dividends are immediately and automatically suspended. Debt holders cannot use the courts… Read more »

Thanks for clearing that up. Much more useful than the unfortunate (but I guess predictable considering how this forum is overrun by them) troll rantings my post attracted.

Seems to me that if there is more assets than debts any deposits are covered no matter what.

Personally I wouldn’t have that much confidence in it. You might “request” your deposit back, but there’s nothing stopping them from just dragging their feet about it, or just blatantly not giving it to you.

What are you going to do, sue them? Then it ends up getting worked out in court either way.

If someone is really concerned about Tesla’s financial condition they shouldn’t make a deposit on a vehicle that they couldn’t afford to lose. I don’t think downplaying the risks is doing any one any favors. Companies don’t always play completely by the rules and getting things sorted out in court later is always a risk.

“If someone is really concerned about Tesla’s financial condition they shouldn’t make a deposit on a vehicle that they couldn’t afford to lose.”

I’ll agree with this part of your post.

With that said, if you can’t afford to lose $50K on a Roadster reservation, I would argue that you really shouldn’t be buying a $250K car in the first place…..

Same with a $1K deposit on a car that Tesla has projected will typically sell for around $42K. Heck, you will lose that much in depreciation alone when you drive off the lot when you buy ANY brand new car for $35K+ dollars.

“Tesla has been INCREASING their assets compared to debt,” First, this is not true. Such things are measured as ratios. Tesla’s asssets/liabilities ratio was 1.20 on 9/30/17. A year prior it was 1.27. The ratio is declining. Second, the only reason assets exceed liabilities at all is repeated stock offerings. If the stock market should become unfriendly for whatever reason, Tesla’s asset/liability ratio would fall further, going below 1.0 in a couple years. That by itself doesn’t guarantee backruptcy, of course, but it would cause distress. This need for continual cash injections is the real issue. Chapter 11 is for companies who make money from operations but can’t service their oversized debt load, or who lose money from operations due to some temporary situation. Tesla’s operations have lost money 14 straight years. That’s not a temporary situation. The claim that Tesla could make money if they stopped growing may be true, or may not. It’s quite possible a dialed-back Tesla that just sold Models S/X/3 without regular launch events for fantastic new capital-sucking products would fall out of favor and actually lose MORE money than they do now. To conclude – it’s possible a BK Tesla could restructure under Chapter… Read more »

I honestly don’t think Elon cares if Tesla ever makes a profit. As long as he can keep money enough pouring in to finance the next new concept and reveal show, he is happy. It seems for him it’s all about the process of creating a new exciting thing and not so much about the tedious, day to day business of making a company profitable and actually producing product. This is why I’m coming to the conclusion that Tesla is really a design firm and not so much a manufacturing firm.

There will come a day when many Tesla investors will say- “Show me the money!”. Others simply don’t care. They like going along for the Elon ride.

Another Euro point of view

+1, in a way, one of the reasons Tesla keeps being funded despite its eye watering losses is for those investors to be able to enjoy watching the “next episode”, like TV series. Tesla is a bit the “Downton abbey” of car makers. :-).
So the semi and roadster 2 reveal was an excellent “downton abbey” episode.

Or maybe it’s because investors don’t see Tesla investing money in future growth as “losses”, no matter how many times Tesla haters like you try to mischaracterize this process as losses or “losing money”.

Tesla spending money on capital improvements and growing the company’s production capacity isn’t any more of a “loss” than someone putting money into their 401(k) retirement fund is a “loss”. In both cases, it’s an investment — not a “loss”.

Or, they can actually do math and they realize that 120 BILLION dollars of potential revenues just for the first 5 years of full Model 3 production is worthy of their investment. That isn’t even looking at other future profit centers which each have their own potential payoffs.

Heck, one of the side businesses they have brewing is a Tesla competitor to Uber. Uber reportedly has a market cap EVEN HIGHER than Tesla’s current market cap.

Tesla has a potential market cap doubling side venture brewing in the back wings.

Double
Market
Cap

Let that sink in. Crazy, eh?

That is actually how the vast majority of US companies operated until the 1980’s tax cuts. Prior to that, it was just way too costly to pay the taxes on cash profits due to the high tax rates. Most companies showed very little or no book profit, as they continually reinvested their money into growing their assets instead. This is how the Great American Manufacturing Industry was built, through forced reinvestment in their own companies. And shareholders were happy to just watch their stocks grow in value in reflection of those growing assets. This was the market reality throughout the 1950’s/60’s manufacturing boom that built the US middle class. It wasn’t until the 1980’s that this changed. With the new demand for cash profits, companies made cuts to their companies instead of growing them. “Trimming the fat” and eliminating less profitable product lines and outsourcing became the new normal. Our great manufacturing juggernaut, already damaged by the 1970’s energy crisis went into full retreat. The damage to the US manufacturing industry has been well documented. Yes, it does appear that Tesla is returning to decades ago norms, where growing their company is prioritized over big dividends to shareholders. Where spending… Read more »

Yeah, they reinvested their profits. That’s the operating word. That is not really what Tesla is doing. Yes, it’s impressive what you can do when people give you free money.

I don’t even hold anything against Elon Musk. It’s great that he can inspire people, and that he’s actually doing something good with it. (Plenty of inspirational leaders in the past have just enriched themselves or used their influence to bad ends.)

But let’s not pretend that there’s any sort of business sense to the Tesla model. It’s entirely reliant on Musk’s cult of personality.

“Yeah, they reinvested their profits. That’s the operating word. That is not really what Tesla is doing.”

Not only B.S., but unbelievable B.S.!

https://i.imgur.com/kbFGFXJ.gif

Reinvesting their profits is exactly what Tesla is doing, along with borrowing money so they can grow faster than they could if they relied only on their profit margin.

Again, it’s the Amazon.com business model.

If you want to say reinvesting their revenues along with investment dollars, that’s fine too. It is just semantics.

The reality is that the only reason why Tesla runs in the red is because they are growing. That growth is funded by both revenues on sales and investment dollars. Without all their spending to grow superchargers, factories, inventory, service centers, employee head count, new product development, existing product improvement, etc, they would be in the black.

When those profits from revenues are spent on growth, obviously those dollars have been spend, and there are no longer book profits. But they are definitely profits, and they were definitely spent on growth.

I don’t know why this is so hard for so many people to understand.

It is no different than if you own your own business and are making $100k in profits a year, and you decided to spend that $100K to double your business. You won’t be in the black for that year because you had profits and you spent them on doubling your business.

I guess that is too much of a deep concept for some people.

Were’s the math??
My guess is that the money brought in is a drop in the bucket.

They haven’t released how many reservations they have gotten, so it is impossible to do any math. We will have somewhat of a better idea when they release their next quarterly SEC papers.

The Pied Piper did not take requests. Though Musk says the pace is allegro it’s more andante, but he is calling the tune, and the children are dancing.

“It comes as no surprise that some Tesla skeptics have referred to Musk’s ways as a Ponzi scheme.”

Those are not “skeptics”, those are Tesla hating FUDsters. That is, people who use a deliberate strategy of disinformation (which means “lies”, for those who don’t know exactly what that term means) in an attempt to damage Tesla’s reputation.

What is a surprise is that an InsideEVs article would repeat such obvious and factually incorrect FUD! Tesla’s stock promotions can’t possibly be a Ponzi scheme, which is a multi-level marketing scheme. It may be correct to call Tesla’s stock price a “bubble”, but it isn’t a Ponzi scheme, and it’s downright ridiculous to talk about it as if that is even possible.

Hahaha, they didn’t really repeat things, they SAID things.

But you can’t say it that way since that would be directly criticizing the website.

As I have consistently said to doubters, Tesla’s business plan will work as long as the stock market is rising.

Another Euro point of view

OK, let’s then say Tesla is only 50% ponzi scheme. So 50% car maker, 50% ponzi scheme. I mean with Tesla its always “never mind the loss we make now, look instead at next project”. Always the “next product”. Kind of tick many of the “ponzi scheme” boxes. Now it is indeed not only that as if all ponzi schemes would require to design complex products and make billions selling them, there would be very few of them.

“OK, let’s then say Tesla is only 50% ponzi scheme.”

Let’s not. This isn’t a matter of opinion; the term “Ponzi scheme” has a well-defined meaning, and Tesla simply does not fit, period. That’s a fact, not opinion.

See my post above for the ways in which Tesla’s business model makes it quite different than a Ponzi scheme.

Or to put it another way: If Tesla is a “Ponzi scheme” then so is Amazon.com!
😆 😆 :lol!

Based upon your definition, every company that raises money to build a new factory or build a new product is a ponzi scheme, and the entire US manufacturing industry is all one big ponzi scheme.

https://object.cato.org/sites/cato.org/files/wp-content/uploads/images.duckduckgo.com.jpeg

As others have Told you to Take a Chill Pill, Simma’ Down, Take Yr Meds, and put down those dang Stuart Smalley Al Frankenstein pompoms, it is very simple. 1. as stated further down in the comments, TSLA and Musk doesn’t care to make a profit (as long as his investor/partner friends, Tencent, US govt even unde Obama) will fund his operations. It is Virtually Unlimited Monetary funding. The stock shorters have holes in their bank accts 2. Obviously the term “ponzi scheme” is very strong and incorrect here. Investor partners willing know and take the risk anyhow. 3. Only Now, when “Crisis On the Horizon, or Put Your $ where your Mouth Is” (Model 3 LA/California demand until Waitlist =0) time approaches, is TSLA/Musk perhaps sweating bullets, when they have failed so far to crank out the car Model3 itself, making him looks emissions with Egg in his face (Certainly not the first time – China autopilot deaths, Model X falcon wing hubris-laden doors ripped off , etc). 4. Model S & X overall USA sales growth Flatlining with NO growth potential. Poor China market share. 5. So the question is How Long can the Bonfire Cash incineration keep… Read more »

I am not worried and I support this.

This will sound a bit “creepy” but everytime Elon talks, I understand him and I can relate to him.

He is geek like me, he have a vision that I support and as long I dont see him going around spending money on parties / drugs / douchebag type of things, he will have my support.

I dont care if he is late with things, I know it if was up to him, it would have been done yesterday.

I will be first in line to call him when he do something stupid, but he have my support until he becomes to much crazy and maybe stop caring (for whatever reason).

Wall street banksters are mad at Elon for cutting them out of the deal lol Go tesla go destroy dirty gas guzzlers and diesels and piss off wall street banksters lol this is awesome WALL STREET GOT BAILED OUT MAIN STREET GOT SOLD OUT

Hmmm, no, a lot of Wall Street investment firms are heavy investors in Tesla stock, both “long” and “short” investments, and are also institutional investors in Tesla bonds.

Tesla stock is often the most shorted stock of any, and institutional investors are certainly part of that trend. Short-term investing by “day traders”, both positive investments and negative “short” investments, are a large part of why Tesla’s stock price is so volatile.

https://www.reuters.com/article/us-usa-bonds-tesla/bond-investors-give-tesla-a-1-8-billion-endorsement-idUSKBN1AR28M

There’s nothing volatile about tesla stock price it steadily has risen over the years. A volatile stock can be found in shale oil producers.

A great deal of insight into the Musk approach to financing is clearly presented in his biography. The “investors” (venture capitalists) in both cases of Musk’s earlier businesses could careless about the product. They only wanted to squeeze out returns while sacrificing the creators.

So Musk on this third go-around is applying the lessons learned. Screw the investors, take their money and change the world. Tesla is now just to dang successful to liquidate. EV business, Utility storage business, Boring business, Truck hauling business, Solar roof business…. I enjoy hearing the endless crying and whining of investors realizing the planned “sting” becoming impossible.

Many of the venture capitalists got government bailouts in 2007 remember WALL street got bailed out mainstreet go sold out
I protested in the streets of downtown Orlando I haven’t forgotten.