What?! FTA: we expect Tesla to become cash flow positive at the end of next month.
However, given that we do have a global supply chain and that floods, fires, hurricanes or earthquakes can cause supply chain interruptions and halt production, we thought it would make sense to raise capital to protect against such an event.
Translation: "So we expect to be cash-flow positive, we won't spend the money that we raised, but we'd thought we'd go ahead and dilute the shareholders, you know, just for insurance."
I believe actions not words. The actions are: He raised money and diluted. You don't do that when you are flush with cash.
How do you jump from "we're almost cash-flow positive" to "we're flush with cash"?
And isn't Tesla's situation a little too tenuous for them to be feeling sorry for diluting their shareholders? Making viable electric cars is their priority - not making their investors rich ASAP.
It's insurance. What he's saying is that the company is fragile right now, and any blip could very seriously harm their growth. The fundraising is a direct response to that risk analysis.
Otherwise, they would probably raise money later for a specific project requiring lots of capital (like a new vehicle, as mentioned).
What?! FTA: we expect Tesla to become cash flow positive at the end of next month.
However, given that we do have a global supply chain and that floods, fires, hurricanes or earthquakes can cause supply chain interruptions and halt production, we thought it would make sense to raise capital to protect against such an event.
Translation: "So we expect to be cash-flow positive, we won't spend the money that we raised, but we'd thought we'd go ahead and dilute the shareholders, you know, just for insurance."
I believe actions not words. The actions are: He raised money and diluted. You don't do that when you are flush with cash.