Elon Musk is grimacing all the way to the bank as Tesla finally raises more money

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Tesla's capital raise will intensify Elon Musk's pivoting of Tesla from an electric car company to a robotaxi service. But is that exciting enough for him?

finally decided to do a capital raise, and it should bring in about $400 million more than the company originally planned.capital raise — a combination of equity and debt — will intensify CEO Elon Musk's pivoting of Tesla from an electric car company to a robotaxi service.

That's not to say Elon Musk is happy about the victory. He likely didn't want to raise any more money from Wall Street. But business reality in the auto industry can't be denied: carmakers are capital gluttons. Maybe Musk should have stuck with a mission to Mars and taken a pass on the electric-vehicle revolution.

OK, the profit thing is a legitimate consideration. Robotaxis could yield 30% margins, versus 10% for a solid mass-market automaker. There's a reason why a lot of players are entering the space.

 

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Yeah. He foolishly doesn't want to just sit on his money and keep it idle. He wants to do something with it. It's just a means for an end, not the end itself. Such a fool...not wanting to save for a rainy day.

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