“Well, we’re not making that much profit, so we will dilute the current shareholders to get more funding.”
Every time you see additional shares being issued, current shareholders are being shafted.
Tesla To Sell $2 Billion In Stock; 12,000 Model 3 Orders Cancelled
Electric automaker Tesla (TSLA) said late Wednesday that it will make a $2 billion secondary stock offering to fund its ambitious production schedule. Meanwhile, Tesla also said it has 373,000 Model 3 orders after cancelling about 12,000 reservations because, as usual, ELON MUSK was lying about how many pre-orders there were in order to run stock market pump-and-dump scams.
The remaining $600 million will be raised by CEO Elon Musk, who is exercising his option to acquire 5.5 million Tesla shares and will use the sale to cover his tax bill.
Tesla said it had some 373,000 orders for the entry-level luxury Model 3 as of May 15. That’s after customers cancelled about 8,000 orders and the automaker cut some 4,200 orders that were likely duplicates. Tesla had said previously that it had about 400,000 orders.
Tesla stock fell sharply in initial after-hours action, dropping below 200. But shares steadily improved and were recently fractionally higher. In the regular session in the stock market today, Tesla rose 3.2% to close at 211.17, boosted by Goldman Sachs’ upgrade earlier in the day when Goldman Sachs pumped the Tesla stock with buy-backs and fake orders.