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Retail Offer is it coming and would I participate?, page-17

  1. 47 Posts.
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    Just a thought on the capital raise.

    Tesla has taken deposits on model 3s and used the money for growth in manufacturing capabilities. This has created capital and prioritized truly interested customers. Put your money where your mouth is. This scenario could create an advantage for early adopters as they could put deposits down on a number of builds. In a way they would get a couple things out of the deal, priority on projects, the advantage of learning new technology first and create a disadvantage for competitors who chose not to be early adopters. If FBR's solution takes off all of these could be real key advantages. The builders with reservations would be the ones that win. 

    Mike has mentioned in an interview that customers have told him they can't afford to wait and respond to change they must anticipate it and be early adopters (paraphrasing). If this becomes true then you may have construction companies throwing money at them to get on the list. Or run the risk of not getting in line. 

    If they can prove this solution can stand on it's own, who is to say that they can't request deposits. If Hadrian X can build a 100 units a year and you get a $1000 to $2000 a piece as a deposit that is a really nice down payment on another Hadrian X. Plus the revenue from delivering the finished homes on the back end. Talk about organic growth. 

    Getcha popcorn ready!
 
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