Post discussion- Teslas Capital Structure

In this discussion, you will make a total of three posts, including one initial post (60 points), one reply to the other's post (20 points), and one reply to reply to your initial post (courtesy, no point). To get the fullcredit, you have to:

meet the deadlines.

include data or facts to back up your argument.

Please review the information below that details the requirements for this discussion assignment.

Be sure to number your response to each question so that your answer corresponds appropriately with the question being asked.

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Initial Post: approximately 1 paragraph for each question (lengths may vary a bit).

Tesla's debt to equity and its business could be found in many resources. For example, yahoo finance, morningstar.com, Factset, and UNH library dataset (the instruction video on finding the information is in How To Find Finance Data in this Module). Specifically, if you like to know the capital ratio of the firm, industry, and sector, Hoover's database on the UNH library website also provides the information under the "Ratios Comparison" in the left panel. The instruction on using Hoover's is part of the video.

Tip: search Tesla's new development and business model and strategy to know more about this company before posting.

Discussion questions:

Does Tesla need more capital than traditional car makers like GM and why? List at least 3 reasons. (20 points)

Is Tesla's capital structure optimal? Justify your answer from Tesla's business model. (20 points)

Should Tesla issue more stock or debt to raise capital in the future? Explain your answer. (20 points)

Reply to other initial posts: Choose one initial post by your classmates to reply (20 points). Your reply could agree or disagree with the initial post and explain why. Your post has to provide the fact or data to support your explanation in order to get the score.

Reply to the reply to your initial post: Comment on the reply to your initial post. Your reply could agree or disagree with the reply by others. It is strongly recommended to provide facts or data to support your argument. (0 point, courtesy)

Tips for a successful post: Use full sentences. Be specific and draw from the information. Always use a respectful tone. You must make an initial post before you can see what others have posted.