Is Tesla Really a Buy As It Raises $2 Billion?...READ MORE
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 | | Is Tesla Really a Buy As It Raises $2 Billion? | | Regulatory filings show Tesla plans to raise between $2 billion and $2.3 billion, consisting of $1.35 billion to $1.55 billion in five-year convertible senior notes (debt with a low interest rate of 1.5%-2% that can be converted to stock if the share price rises roughly 30%), plus $650 million to $750 million of common stock.
There is little chance of failure since the deal is being managed by Goldman Sachs, Citigroup, Morgan Stanley, Bank of America Merrill Lynch, and Deutsche Bank. These firms have access to deep pocketed investors around the world.
There are two sides to consider, as we explain in our latest article, because turning to the markets for additional funds could indicate Tesla has the resources to deliver on its CEO's promises or it could indicate "the beginning of the end for Tesla" as one prominent bearish analyst predicts.
As we explain in the article, there are significant differences of opinion on Tesla CEO Elon Musk with one analyst saying "Something's gone seriously wrong in his brain, causing him to become a reckless, narcissistic brat and pathological liar," and another noting "I personally do think that Musk is a genius. He is probably the closest thing we do have to Tony Stark. And yes, he is a superstar—in today's sense of the word."
We have both sides of this story, and more, in our latest free educational article which is available right here.
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