So even that interpretation leaves me wondering "why didn't they take that into account earlier"? Do the fancy computer-control-all-the-things people have too much influence compared to the boring practicalities of things like "how will we build this?"
Fundamentally my question on Tesla is now: if you're priced as a "we have a fundamentally better way of doing things that will disrupt the industry" company, but the core process in your business is still fundamentally inferior, will you have a long enough runway?
I used to be a bear on Tesla for grumpy "I don't like the decisions and design choices they make" reasons, but now the business itself seems a bit underdeveloped.
Here we agree. I come across as a Tesla fanboy in these comments but I think Tesla's valuation is crazy high, too high, and I still think there's a chance they fail completely like so many other auto companies (a tough business).
My theory is Musk knows the only way he'll be able to compete is attracting the best talent through stock incentives, and to do that he needs to jack up the stock price by pushing engineers way past what they are comfortable with.
An underreported stat is the increase in TSLA outstanding shares, which I think is Elon throwing stock incentives at his employees to make them go faster, as a TPS alternative (for now?)
Tesla’s stock behavior is due to the ongoing game of “who blinks first” between TSLA shorts and TSLA short-squeezers. With $10 billion short position the company’s fundamentals are reduced to a side show.
Your article only accounts for about 7.9 million new shares from the secondary offering, but many more have been issued.
It's primarily from equity grants. Even your article says Musk tacked on his stock option exercise as part of the secondary offering, which increased the dilution.
Fundamentally my question on Tesla is now: if you're priced as a "we have a fundamentally better way of doing things that will disrupt the industry" company, but the core process in your business is still fundamentally inferior, will you have a long enough runway?
I used to be a bear on Tesla for grumpy "I don't like the decisions and design choices they make" reasons, but now the business itself seems a bit underdeveloped.