Well, let's do this again shall we?...
Tesla is about to mass-produce its first car model at speed and scale that it has never ever evinced the ability to operate at, creating a lot of doubt in some circles that Elon Musk and Co. have bit off more that they can chew. Meanwhile Tesla's stock continued to surge on...faith(?) and no one seemed to give a solitary shit that Tesla's fundamentals were nonsense.
But today we got news that made David Einhorn's totally natural hair stand on end with excitement:
Tesla today announced that it intends to offer, subject to market and other conditions, $1.5 billion in aggregate principal amount of its senior notes due 2025 (the "Notes"). The Notes will be senior unsecured debt obligations of Tesla. The interest rate, redemption prices and other terms of the Notes are to be determined.
Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes.
Holy shit, Tesla is tacitly admitting that an auto company with an almost $60 billion market cap is incapable of projecting its own cash burn rate and will use debt to finance its most ambitious rollout ever because it apparently really needs about one and a half billion dollars to make a shit-ton of cars that it is going to go through "Manufacturing Hell" to make.
Welp, there is the drop in Tesla stock that Einhorn and his band of bears have been waiting for...
We'll say it again, kids; If you like logic-based reality, don't trade TSLA.