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re: Investing In Tesla

Posted on 4/27/17 at 7:26 am to
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 4/27/17 at 7:26 am to
quote:

Cash burn rate is an important consideration when investing in companies like Tessa. I found this article interesting.



The reason cash burn doesn't bother me is the world is awash with cheap cash.

1) Elon Musk is worth over $10B he can bankroll Tesla in anyway and said as much himself

2) SpaceX can bankroll tesla, did you notice spacex bought the solar city bonds before?

3) Tencent which is China's largest company at almost $300B, they took a stake recently of 5% in Tesla when Warren Buffett and all the bears constantly rant about how the chinese electric car makers will do it cheaper and better. Tencent who is in china didn't even believe that and spent $1.8B buying Tesla at $218 or so. So when you have a backer like that, they can probably go to them whenever for a private offering if it is needed again. At this moment every tesla offering is oversubscribed, so lack of demand for investors is not even remotely an issue for them now.
Posted by Novae
Member since Aug 2005
98 posts
Posted on 4/27/17 at 11:49 am to
You may want to check how much of his net worth is tied up in Telsa stock. You think there's cheap cash now, and there is, but it dries up immediately when there's a crunch, or worse, a crash. When both factors are correlated so directly, there's no Musk bailing it out if it's in a freefall.
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