Re:Tesla Roadster
by adventured on Friday November 17, 2017 @02:31AM
(#15719882)
It works because they're using a stack & roll approach to financing the corporate build-out.
In two years they'll have a new thing to take deposits on. Stack the pre-orders, roll to the next announcement, deliver the last thing, then do it all over again. They're floating a lot of cheap financing this way.
In the meantime, the approach of announcements & pre-orders keeps their stock charged, which they can also abuse for financing if necessary.
It's precarious and dangerous (inevitably stock market decline & recession), and it works extremely well while it works.
In two years they'll have a new thing to take deposits on. Stack the pre-orders, roll to the next announcement, deliver the last thing, then do it all over again. They're floating a lot of cheap financing this way.
In the meantime, the approach of announcements & pre-orders keeps their stock charged, which they can also abuse for financing if necessary.
It's precarious and dangerous (inevitably stock market decline & recession), and it works extremely well while it works.