That is not raising cash, that is still borrowing, when the asset value falls below the leverage level, no more borrowing and a margin call begins ...... Musk has already been at that point when Tesla was a dirty word, SpaceX is headed that way because both Tesla and SpaceX loans are approaching their roll over dates, no improvement in perceived asset value will mean the whole show is already over leveraged .... and the house of cards comes tumbling down ..... Financial institutions don't lend money on dreams and SiFi fairytales .... although they did in the last financial crash, so who knows ..... The think that many still haven't learnt from the previous crashes, there is no such thing as "Too big to fail" T1 Terry
Part of their problem is what is the alternative? When my $9,000 Tesla battery got ‘cooked’: Can I buy a replacement EV for $9,000? Can I afford to drive an ICE that wears out too? The only way that made sense was to pay what it would take to replace an ICE engine and transmission with the Tesla battery. But investors face a big problem … who else besides TSLA? Nuclear - light water reactors, dead end Fusion - only 30 years to go AI + robots - are not shopping at Walmart “Golden Egg Goose” mutual fund - already committed to TSLA and nuclear plant debts I wish them no harm but have no envy of their options. Bob Wilson
'what is the alternative' has been a Wall Street problem for a long time now. that's why there are so many more risky opportunities. too much money chasing to few investments
