Keep in mind that the billions did not drop into the companies checking account. The company only received cash for the original offer price of $12-14/share. The subsequent run up in value is money that ended up in the initial investors pocket. Also this is very thinly traded therefore only a few trades will drastically change the share price. Also the vast majority of the ownership is owned by a few people. As they sell off subsequent buckets of shares, this money goes into the pockets of the investors. Only to the extent that new shares are created, these would result in more startup funds to the company but at the expense of diluting the existing owners.
As I looked into the recent filings, I was alarmed that they do not really have much cash flow and maybe not enough to get this thing off the ground. They are in default with their bank loans and are currently paying 18% interest on their debt.
I hope they get off the ground because i would like to see these cars on the road and I would love to have one in my driveway.
As I looked into the recent filings, I was alarmed that they do not really have much cash flow and maybe not enough to get this thing off the ground. They are in default with their bank loans and are currently paying 18% interest on their debt.
I hope they get off the ground because i would like to see these cars on the road and I would love to have one in my driveway.