On: Tesla Announces $500M Common Stock Offering

[cwt137]

With Tesla loosing $4,000 per car[1], and they are on track to produce 50,000 cars this year, you knew they had to raise money sooner or later.

[1] http://www.cnbc.com/2015/08/10/tesla-burns-cash-loses-more-t... [2] http://www.bloomberg.com/news/articles/2015-08-05/tesla-fall...

[dtparr → cwt137]

Again, they're not losing $4000 per car in the sense that their cost to produce one car is $4000 more than what they're selling for. (Meaning if they sold 50k more cars, they'd lose $200M)

They had significant CapEx and so their revenues - costs worked out to an amount that was $4000 for every car they did sell. Had they sold more, their net loss would have been less, not more.

[hughes → dtparr]

With all the headlines about the $4000 figure the last few days, I was completely mislead about what that actually meant. Thanks for explaining it.

[dtparr → hughes]

Yeah, for whatever reason that headline stuck even on sites that are typically less click-baity and/or pro-Tesla. My favorite way I saw the headline explained was something like:

I had major medical expenses this year and had to dip into my savings such that I ended up spending about 12k more than I brought in this year. I also ate 12 pizzas in the year. Their headline is like me saying "I lost $1k per pizza this year". It's accurate in a sense, but they're not related.

[conistonwater → cwt137]

According to your [1], their GAAP operating loss per vehicle is $14,758.