Carnival is selling its own stock at the worst possible time (but it's desperate)

You know things are bad when... Business Insider comes out with an article titled: "You can buy a retired Carnival cruise ship and have it all to yourself." Since Carnival anchored a record $4.4B quarterly loss back in June, the tide hasn't turned much for the world's largest cruise company:

• Carnival lost $2.9B last quarter and it literally only has 1 ship sailing right now (in Italy). Womp.
• Yesterday, Carnival announced a $1B stock sale to raise money at the worst possible time. Carnival shares sank 11% on the news. Womp womp.

Endless shrimp cocktails never end well... Carnival's stock sale didn't either. But Carnival is desperate: it's losing $770M a month and only has $8B in cash left. US cruises aren't expected to resume until the end of October (ambitious) and virus fears are still high. Desperate times call for desperate cash-raising measures:

• Selling at a low: Carnival stock is down ~70% this year, so it's selling stock at a major low point. Compare that to Tesla, which is capitalizing on record high stock prices by selling $5B worth of new shares.
• Diluting: By issuing new shares, Carnival is diluting the value of its existing ones. Since more shares are being added, Carnival stockholders will own less of the overall company.