Solution To Tesla Capital Concerns

Solution To Tesla Capital Concerns

Recently after Tesla released its earning, part of Wall Street seemed very concern with Tesla raising capital. Some, perhaps many (I know there are naysayers) reservation holders previously said let them pay now. Currently, I have no problems putting money down for Tesla as long as it is refundable. For naysayers, yes I understand putting money in the bank is the same thing, but when the Model 3 is released and finished paying for the Model 3, all they need to worry about is the insurance or the upgrade they want. Less thing on their shoulders. No worries about putting down payment or paying monthly for the car. When there is only one person thinking about this, then Tesla can ignore the person or think they're insane, but I am sure I am not the only one who wants to start paying now, so perhaps create an option to let us start paying now!

Shadowmist | February 27, 2017

I have no problem with this, I'd throw down an extra $10,000 right now if it was an option why not....

bj | February 27, 2017

Telsa can easily raise more capital if it needs it through normal financing channels - it doesn't need to crowd-source it.

In any event, the notion of "putting money down for Tesla as long as it is refundable" is not particularly helpful. If money Tesla raised this way was refundable then it's not solid money they can rely upon for a known period of time to invest and expand - it could be called upon at any moment and then they'd be forced back to the normal financing channels to raise the money to pay back the crowd-sourced money they have just spent. So why not just raise it properly the first time if it's needed?

The deposits for Model 3 were mostly just a mechanism for assessing real demand and demonstrating some level of commitment to follow through with a purchase - it had nothing to do with raising capital.

SoFlaModel3 | February 27, 2017

We are talking about Tesla's "affordable" car. Really consider how many people have the cash sitting around to buy the car outright, let alone pay for it well in advance of getting it.

Many will lease and many will finance. That is not a dependable model.

Red Sage ca us | February 28, 2017

Can't do it. The traditional automobile manufacturers would be up in arms. They would use their influence to have Federal agencies bring forth investigations with the intent to give an appearance of impropriety. Such a move would be the perfect excuse to bring on trumped up charges of false advertising, and/or securities fraud, however unfounded. There is more than one reason why there haven't been any successful and lasting American car companies started in the past 90 years. The same thing, the same strategies, the same conspiracies were launched behind closed doors and in backroom deals against Tucker, and later DeLorean. Tesla has done a good job of avoiding the pratfalls of doing things differently that they experienced. No need to give the enemy the very sort of ammunition they are hoping for.

noleaf4me | February 28, 2017

Maybe an extra payment to move up in line?????

gregoryellis1 | March 10, 2017

Maybe Tesla could ask for an extra large deposit when we configure & commit to purchase?

SoFlaModel3 | March 10, 2017

They cannot do that, because one would have to assume most buyers in this space are leasing or financing. That would be a real slap in the face to people that lined up just to find out they have been skipped.

mos6507 | March 10, 2017

"Can't do it. The traditional automobile manufacturers would be up in arms."

They're already up in arms over Tesla circumventing the dealer network. So that ship has already sailed.

Haggy | March 10, 2017

Tesla didn't say they needed capital. They said that if they raise capital, it will give them a margin of safety. They don't want to be in a position where they don't expect to need the capital and don't have the capital but something comes up and their backs are against the wall.

Investors who see this as a sign that Tesla is bleeding cash are overreacting.

Red Sage ca us | March 10, 2017

mos6507: The ship you are speaking of sailed with nowhere to go. Because Tesla was doing nothing wrong, no matter how loudly 'independent franchised dealerships' complained. It took back door, back room, under-the-table antics just to change the law so that Tesla was 'banned' in Michigan, a supposed bastion of support for traditional automobile manufacturers.

noleaf4me | March 10, 2017

I'd put some more down if it helps -- pay now or pay later....