As announce today and based on the dilution decision of the Tesla to sell some of its shares of its company for 5 billion $ value what is the meaning of that for stock holders?
As Tesla is investing in Berlin and Texas for new factory lines and consecutively higher production rates, this 5 billion dollar absorption of Finance has a clear asset value and debt reduction of Tesla within 3 months. This perhaps will lead to risk reduction and lowering of current debt ratio of the company. The positive side of point of view is that now each stock has a higher value with 5 billion dollar cash flow in. Though it seems a dividend dilution for investors but in fact this strategy is a risk management approach for higher production rate and especially for future.
With this move not only the current valuation make more sense but it also will have a long term impact for holders. In addition, with S&P joining in 14th and 21th of December higher means of support for this company will be provided and will bring a positive insight especially for emergence of Electric vehicles, new batteries and solar energy products in prospective years.
As Tesla is investing in Berlin and Texas for new factory lines and consecutively higher production rates, this 5 billion dollar absorption of Finance has a clear asset value and debt reduction of Tesla within 3 months. This perhaps will lead to risk reduction and lowering of current debt ratio of the company. The positive side of point of view is that now each stock has a higher value with 5 billion dollar cash flow in. Though it seems a dividend dilution for investors but in fact this strategy is a risk management approach for higher production rate and especially for future.
With this move not only the current valuation make more sense but it also will have a long term impact for holders. In addition, with S&P joining in 14th and 21th of December higher means of support for this company will be provided and will bring a positive insight especially for emergence of Electric vehicles, new batteries and solar energy products in prospective years.
