Tesla Model 3 | Tesla seeks $1.5 billion junk bonds issue to fund Model 3 production

NorthStar

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Feb 8, 2011
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@ first I was thinking to post it in the Model S thread, but then; those are different cars and from different price brackets and with different customers in mind and with different financial aspirations and different incentives and from different subsidies and different taxes and different design, in and out, and different power ratings, batteries, cosmetics, materials, interior decors, etc. Brief, it is still a Tesla but a particular one, the new 2018 model 3.

https://www.reuters.com/article/us-tesla-offering-idUSKBN1AN13I

Every time I hear the word "junk" bonds it rhymes with "funk", "punk", "sunk", ... just like a poor song.
It's like a desperation. But it's only an impression, it don't mean a thing.
People got rich in the past from selling junk bonds, and some buyers/investors got hacked/bankrupted.
I think here it's solid technological/ecological/environmental investment.
But then, I got whacked myself before for investing in the best technologies in medicine, and communication, and transportation, and space.
Who started NASDAQ? ...Where it's coming from.
 

NorthStar

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On a different note ...

This is very sad news; she is so pretty, he is so rich and smart. I thought they would get married, have tons of beautiful children, and live happily forever after.
Tesla CEO Elon Musk breaks up with Amber Heard, report says

It was not meant to be I guess. I was wondering since their adventure started, about a year ago, how long would it last.

He'll find someone else, more suitable, I'm sure.
 

astrotoy

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Elon's first wife was also an actress. They actually married, divorced and remarried and divorced again. I think it is hard to be the wife of a CEO of two major companies (Tesla and SpaceX), who is also creating new companies on the side (Hyperloop and Boring Co.) Not too much time for his spouse.

As far as the new bonds, Musk is finally going the more conventional way to raise money, through borrowing, rather than issuing more equity and diluting the value of shareholders. I, for one, am happy about that. I bought Tesla stock back in the fall of 2013, about six months after my Tesla Model S arrived. If I had bought the stock when I got the car, I would have a ten bagger now. Still not doing badly with the investment.

My car is 4 1/2 years old. Only a few minor issues. One thing very nice is that Tesla picks up my car which I need service and leaves me a loaner (sometimes another Tesla - if not they pay for the rental and the gas I use). Then when things are done, they deliver the car, all washed nicely, and pick up the loaner. I charge up the car at home, so it takes me about 30 seconds to plug the car in and it waits until the electric rates are lowest before it starts charging. It is all done in the morning, so I always have a full tank of electrons to go. The only major expense was a set of tires and a new starter battery (not the Li Hydrid battery pack that runs the car.) Since I referred one of my friends to get his Tesla, they gave me (and him) $1000 credit, which I used to pay for the tires and battery. My other car, a Lexus LS460L cost about the same as the Tesla when I bought it in 2007. Another very nice car, but it has had a major recall to fix the engine, and the Lexus dealer isn't nearly as nice about servicing the car (in fact I use an independent repair shop unless it is a warranty problem).

Unlike my Lexus, I get free regular updates through the wireless software connection on my Tesla. Only thing I don't have is autonomous driving, since that requires sensing hardware my car doesn't have. My grandkids sit in the back facing jumpseat, so the car can hold up to seven. Of course, fueling is free at Tesla superchargers when we are travelling down to LA to visit the grandkids.

Larry
 

Steve Williams

Site Founder, Site Owner, Administrator
I think it is hard to be the wife of a CEO of two major companies (Tesla and SpaceX), who is also creating new companies on the side (Hyperloop and Boring Co.)

Let's not forget that he was also a founder of PayPal that was later sold to eBay for $1.5B
 

NorthStar

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I've read a similar article earlier this morning, on the way economics works, including junk bonds.
I didn't have the guts to post it. :D

But yeah, I wish Elon Musk all the success, for all of us.
 

Hi-FiGuy

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We took in a Tesla on trade and it had a recall on it. Tesla sent out a service van and performed the recall on our lot.
They have fantastic customer service as far as I can tell. Its costing them a boatload though, we shall see how that pans out in the long haul.
 

NorthStar

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That is impressive customer service indeed. And yes it must be expensive to dispatch a Tesla service recall employee with his service van. It has all the appearance of a first class company with the utmost integrity; I agree with you.

And Elon Musk contributes to the people in need, like in Puerto Rico for example, after Hurricane Maria knocked down the entire electric grid on their Island, by supplying energy solar panels...in the presence of the sun of course.

Brief Tesla appears to be a solid bet for investors and customers.
I am an investor myself, and even if I am not the most successful investor on this planet, research is part of smart investing. I like Warren E. Buffett.

? http://www.zerohedge.com/news/2017-10-06/teslas-big-secret-its-building-model-3s-hand
 

NorthStar

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Competition is always good for the customers, the more the better.
Monopoly is the game of capitalism, like the drug cartels, the prostitution rings, diamonds trade, banks, money laundering, pharmaceutical greed, price gouging, tinted food, slavery, hard labour, criminal jails, corrupted governments and police forces, etc.

Porsche is coming up with a new design that I really like:
https://techcrunch.com/2017/10/07/porsches-mission-e-caught-testing-alongside-tesla-vehicles/

And I just happen to like black.



P.S. Did you read the full link from the post above...#17...because it is a musk read.
 

NorthStar

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Transportation; we are still stuck with four wheels on our commute roads and highways (some use only two, or three, and big rigs have 36 wheels more or less).

Even Tesla uses four wheels.
Elon Musk: The next big thing/automotive trend of the future; gasoline.
http://fortune.com/2017/10/09/teslas-elon-musk-reveals-the-next-big-automotive-trend-gasoline/

Hey, make sure you are in the right state-of-mind (understanding) when reading that short article from the link above. :b
_____

¤ Artisanal car making or factory made:
https://www.autoblog.com/2017/10/10/tesla-elon-musk-releases-video-showing-model-3-production/

¤ What General Motors think:
https://futurism.com/gm-expert-call...r-saying-teslas-can-achieve-level-5-autonomy/
 

NorthStar

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Feb 8, 2011
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This just came up this morning:
https://arstechnica.com/cars/2017/10/tesla-fires-hundreds-of-workers/

"The firings come at a challenging time for the company. Tesla is trying to ramp up production on its mass-market Model 3 car, and CEO Elon Musk had hoped to produce about 1,600 cars for the third quarter. The company produced 260 vehicles instead. Recent reports indicate that Tesla has been forced to produce some parts by hand, slowing the overall assembly process to a crawl."

Hard times for Elon Musk; with the firing of 400 to 700 employees he must find a talented and fast and efficient workforce if he wants to meet production figures and projected deadlines. ...Not an easy task for Mr. Musk when factory lines aren't fulfilled with the right workers and accommodations. More investors are required to pour money on building instead of talking future projections.

The best companies are doing the right things, not talking about them. IMO
 
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