Goldman Sachs is creating a joint venture that will help it capitalize on automotive technology firms while they’re consistently being overvalued on the New York Stock Exchange. Automotive startups have become a hot item, so long as they’re trading on the assumed merits of new technologies, and there’s no shortage of new companies being propped up by established players. The last few years have been a merry-go-round of establishment automakers and financial intuitions investing in startups on the off chance they might have something useful.
Meanwhile, burgeoning electric vehicle companies are using special purpose acquisition firms (aka blank-check companies) to maximize their advantage. Even though some have argued this is being done unfairly, there’s not much accountability in general. The iron could not be more primed for striking if you happen to be one of America’s largest banks.
The brief uptick in share price Tesla enjoyed after beating production estimates this week was swiftly erased by a newly critical Goldman Sachs Group.
The investment bank downgraded the company on Thursday, sending its stock back down the hillside, Bloomberg reports. It’s bad news for CEO Elon Musk’s fundraising plans.
Tesla’s second stock offering netted the automaker $738 million in cash for its Gigafactory, Model 3 development, and dealer and service upgrades, Bloomberg is reporting.
Banks exercised their options to buy more stock than the initial $500 million estimate, with underwriters Morgan Stanley and Goldman Sachs buying more than 2 million of the available 3.1 million shares. Tesla CEO Elon Musk said he would be interested in buying $20 million worth of shares in the offering.
(Before the stock offering, the banking arms of Morgan Stanley and Goldman Sachs loaned Musk a combined $475 million, to which Musk pays market rate and is separate from their investment divisions, according to the offering.)
Shares of Tesla were down more than 3 percent in Thursday trading to $245.
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- ToolGuy Make the hood taller, and I'm in. 😉
- El scotto It leaves the loading dock/loading are in the morning. It gets parked in the same place. Bubba/Bubbette plugs in and it charges overnight. Driver forgot to plug in?First time a warning, second time no pay while their vehicle is recharging. That problem will correct itself.
- El scotto Hmmm, because it would take ohh another 20 minutes; if you rent an EV on the company dime stay at a hotel on the company dime that has EV chargers. I know crazy talk.Common sense would dictate don't rent an EV where there aren't chargers. No, I'm not downloading a find a charger app for a business trip either. People who don't like EVs won't rent them. Some do like EVs and will rent them. However most EV research on here consists of: I bought a dozen eggs, four large dill pickles, and a loaf of bread; therefore I have egg salad."
- 28-Cars-Later Here's another thing you can't buy; and another, and another!
- JREwing It suffered the same small back seat problem that the Ford Contour and Mercury Mystique did. 2 more inches in wheelbase or a taller roof would've helped a lot.But the biggest issue was that it wasn't a SUV/crossover/soft-roader with 3 rows in a market that couldn't get enough of them.