, Columnist
Tesla Does the Right Thing at the Wrong Time
Raising money is necessary, but would have been better nine months ago.
Took you long enough.
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It is said Americans can be counted on to do the right thing, after they’ve tried everything else. And so it goes with news that Tesla Inc. seeks to raise up to $2.3 billion from selling new stock and convertibles.
To be clear: A company that burned almost a billion dollars in the first quarter — and would have burned much more had it not underspent versus its capex budget or relied on selling a hoard of greenhouse-gas credits — should at least consider raising more money. Especially when that company’s stock trades at 37 times adjusted estimates for next year’s earnings.