Re:Stock Market: What Happens If Tesla Enters S&P 500
by yellow_lead on Saturday August 01, 2020 @12:57PM
(#24021975)
It's definitely a good idea. Companies seem to do equity raises when they perceive their stock price as overvalued. Musk has outright said this when their stock price was even lower too. The question will be if they need to do one though.
[ Parent
| on HN ]
Re:Stock Market: What Happens If Tesla Enters S&P 500
by rcMgD2BwE72F on Saturday August 01, 2020 @01:10PM
(#24022090)
How is that a good idea? They are already building 3 giant factories (Shanghai cont, Berlin, Austin), have enough cash for that and some more. They are profitable, free cash flow continues to increase as Model Y are delivered globally. They couldn't spend their money faster. Why would existing shareholders support a secondary?
Re:Stock Market: What Happens If Tesla Enters S&P 500
by an_opabinia on Saturday August 01, 2020 @12:59PM
(#24021991)
They seem to, but then if you had bought Tesla shares the day they announced the raise, you would be looking at a huge speculative gain in your investment.