edatoakrun
Well-known member
GRA said:Via GCR:http://www.greencarreports.com/news/1105727_reactions-to-tesla-100d-versions-less-than-ecstatic-heres-whyReactions to Tesla 100D versions less than ecstatic: here's why
.... . .if the company doesn't raise additional funds—perhaps as much as $1 billion, well beyond any incremental sales boost provided by the 100D versions—the pair of new versions won't matter much. . . .
TSLA will not likely be able to raise the huge amount of cash required to maintain current operations from the bond market, which already regards Solar City debt as lower-junk-grade:
http://www.wsj.com/articles/bond-market-smackdown-solarcity-vs-sri-lanka-1472053337
Bond Market Smackdown: SolarCity...
The raging bond bull market evidently has its limits. That is a problem for SolarCity, and quite possibly Tesla Motors shareholders.
SolarCity said Tuesday afternoon that Chairman Elon Musk, Chief Executive Lyndon Rive and technology chief Peter Rive would together purchase more than 80% of the solar energy company’s latest $124 million bond issue
...SolarCity has never offered such a high coupon on its debt for such a brief maturity. In February, the company issued five-year bonds with a coupon payment of just 5.25%.
The higher cost of borrowing has coincided with a 50% decline in SolarCity’s share price this year.
Higher interest costs should alarm Tesla’s investors, who will inherit SolarCity’s obligations if a proposed merger with Tesla wins shareholder approval. Just as ominous is that it looks like outside investors aren’t willing to buy up SolarCity’s debt, despite the higher yields.
Given the bullish global backdrop for bonds, a company offering an interest rate as high as 6.5% on such a short maturity should be beating investors back, if all were well.Tesla shareholders ought to keep that in mind as they weigh whether to approve bringing SolarCity in house.
So, it would seem come down to another TSLA stock offering to keep the cash rolling in.
Or perhaps further monetization of the sucker list TSLA generated from accepting model three deposits?