X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 9 hours America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 2 hours IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN
  • 9 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 2 days Former BP Exec "Biden not in war against oil" . . Really ?
  • 2 days Texas Supply Chain Massacre
  • 2 days Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 6 hours Top Conservative Lawyer Says Trump Can Stand Trial
  • 6 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days An exciting development in EV Aviation: Volocopter
EV Startup Launches Battery-Replacement Charging Network

EV Startup Launches Battery-Replacement Charging Network

A California-based startup has revealed…

5 Blockchain Startups Disrupting The Energy Sector

5 Blockchain Startups Disrupting The Energy Sector

A recent Global Blockchain in…

Editorial Dept

Editorial Dept

More Info

Premium Content

Is It Time To Buy The Tesla Bounce?

I last wrote here about Tesla (TSLA) on March 1st. Back then, after the company announced cuts to sales and marketing staff, I said that investors should take that, and the market’s reaction to it, as a warning and sell the stock. Now, two months later, and twenty percent lower, Tesla is once again doing its trick of defying logic, but don’t be fooled. The “good news” that has caused a small bounce in TSLA is anything but.

Under normal circumstances, when a company issues stock and/or takes on additional debt, the stock price, logically enough, drops. Selling stock dilutes the value of existing holdings, and debt has to be serviced, which hurts cash flow, and at some point, repaid. However, nothing to do with Tesla ever comes under the heading of “normal circumstances”.

On Thursday morning, Elon Musk announced that, even though he had said just a few months ago that Tesla was done with raising capital, they would be offering $650 million in common stock and $1.35 billion in convertible senior notes due in 2024. As mentioned, the logical reaction to that news would be a slight decline in the stock, but instead, TSLA did this…

(Click to enlarge)

The only explanation for that is that there was a sense of relief that the company had raised some more money, but if you think about it, that is a terrible reason to buy the stock. If the raising of a couple of billion dollars causes so much relief that even the…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News