I am as skeptical of TSLA as the next fellow, but at least the company can capitalize on its rising stock price to convert it into physical infrastructure that provides a certain floor to the company value.
To raise capital and fuel their growth. They raised 2 billion earlier this year at a price of 767 (1650 now) to fuel their growth because they thought there share price was high then. It seems like a perfect time to announce another massive capital raise to fuel their growth now that their share price is double what it was back then and this page [0] lists 1 trillion dollars worth of sp500 index funds and I know vanguard sp500 etf (voo) which isn't in that list has another 250 billion. sp500 is about 27 trillion so that list alone represents about 4.6% of the market.
TSLA joining the sp500 means those index funds alone will have to buy about 4.6% of TSLA to rebalance so this to me looks like an amazing opportunity to raise a ton of cash to fuel cybertruck/semi/roadster growth. 4.6% of TSLA 300 billion market cap could fuel a 13.8 billion dollar capital raise which could be announced after sp500 inclusion as a quick way to get those funds to the proper weighting.
At least that is my idea. During the call, they said they have 8 billion in cash so they don't need to raise any more capital. But then again, elon also said that right before their 2 billion dollar raise earlier this year so...
Welcome to 2021. In a few years, Chase Coleman will pick up large stake in this company, take it public and financially engineer it enough to stuff it into the S&P at a $500bn valuation.
The amount seems unprecedented and the timing. I understand competing for marketshare with TSMC, but it made me think like they are scrambling in case TSMC suddenly goes poof.
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