Don't cancel your M3 just yet....

[seattlite2004]

Maybe? Hahaha.

By last Q numbers Tesla still had something like 2 years of cash burn in hand, and that was still under conditions of negligible M3 sales.

Thanks... What about my Qs?

 

[ℬête Noire]

Thanks... What about my Qs?

I already added response to the hypothetical, which is basically "not really clear because it's so hypothetical".

 

[seattlite2004]

I already added response to the hypothetical, which is basically "not really clear because it's so hypothetical".

Thanks. Will the vehicles and features still work without the mothership One would have to pay for 4G....how about Map data..that come from the mothership or does it have a direct link to google or other data?

 

[Hitman007]

Deposits are long gone. They have already been spent. Vehicles should still be drivable and who ever buys them in bankruptcy liquidation may keep the software up to date.

 

[Hitman007]

 

[ℬête Noire]

Thanks. Will the vehicles and features still work without the mothership One would have to pay for 4G....how about Map data..that come from the mothership or does it have a direct link to google or other data?

That's not really how US bankruptcy most of the time. Especially for automotive stuff. Companies can zombie on for decades in bankruptcy. Look at GM, shareholders were totally wiped out and some it's legacy brand names aside it's motoring on now like that never happened, existing customers never even saw a hiccup.

 

[seattlite2004]

That's not really how US bankruptcy most of the time. Especially for automotive stuff. Companies can zombie on for decades in bankruptcy. Look at GM, shareholders were totally wiped out and some it's legacy brand names aside it's motoring on now like that never happened, existing customers never even saw a hiccup.

Lets move the question one level up. From a really high level...if the mothership is gone..what features will be lost. OTA Updates, Maps? Autopilot?

 

[ℬête Noire]

Lets move the question one level up. From a really high level...if the mothership is gone..what features will be lost. OTA Updates, Maps? Autopilot?

What you'll not have: A relatively radiation-free life, because NK somehow managed to figure out how to nuke the West Coast.

 

[seattlite2004]

What you'll not have: A relatively radiation-free life, because NK somehow managed to figure out how to nuke the West Coast.

Thanks. Found a better answer on the Google. Cheers. You feel better now?

 

[ℬête Noire]

Thanks. Found a better answer on the Google. Cheers. You feel better now?

Not nearly as good as when you grow up.

 

[Saghost]

Lets move the question one level up. From a really high level...if the mothership is gone..what features will be lost. OTA Updates, Maps? Autopilot?

If Tesla somehow failed, there are a number of companies who would gladly buy the whole thing and likely would continue most of the services. In the event the services died for some reason:

Autopilot should still be functional, though possibly with reduced safety/fidelity for sections that have whitelist tiles and the like.

Not sure what will happen with maps - it is Google data plus an onboard dataset so if you can start paying for the cellular account it might be fine.

Same thing with the streaming music - it isn't particularly a Tesla service so it can probably be broken away.

You'd lose the OTA updates and all the phone remote functions unless someone bought or replaced the mothership.

My bigger concern is what happens to the Superchargers. Maybe they'd be spun off and privatized.

 

[adaptabl]

First among many problems with this idea is that none of the Big 3 can afford to buy TSLA. As of Friday's close, the market capitalization of Tesla was roughly 52 billion, compared with Ford and Fiat Chrysler in the low 40s and GM at 59. None of these three is remotely capable of raising the money necessary to acquire TSLA. On the other hand, Apple could acquire them with cash and barely notice the hit.

Do you ever hear of leveraged buyouts? A very small company could purchase Tesla. It will all depend on how long Elon can continue to raise cash in the bond market to keep the doors open.

 

[JonathanD]

Do you ever hear of leveraged buyouts? A very small company could purchase Tesla. It will all depend on how long Elon can continue to raise cash in the bond market to keep the doors open.

Who do you think capital markets trust more, a tiny company asking for a huge loan to buy a large company with dramatically future-priced stock, or Elon Musk, the guy who has built multiple successful companies from the ground up and has a massive following?

 

[voip-ninja]

Maybe? Hahaha.

By last Q numbers Tesla still had something like 2 years of cash burn in hand, and that was still under conditions of negligible M3 sales. I thought I'd already hit Ignore on 'Hitman007' for past nonsense he'd been spewing. Have now corrected that oversight.

P.S. If somehow it came to pass that Tesla went into receivership without you having gotten around to pulling out your $1K, it'd probably take a little extra time for the courts to get you your money. It's all highly hypothetical what would happen exactly because it'd depend on exact structure of the finances at the time and that's inherently an unknown because it'd have to be a lot different than now and what's reasonably expected from the current position.

Tesla will have to do another bond offer to make it through the end of the year. I'm not sure how it is you feel your analysis is superior to what Moody's came up with.

Just more FUD right? Or maybe Tesla just can't execute and it's catching up with them. I have a Model 3 reserved, I want Tesla to succeed, but there's a big difference between being pragmatic about Tesla's prospects and being wildly optimistic as you and others seem to be.

Moody's downgraded Tesla from B3 to B2

Tesla had $3.4 billion in cash and securities at the end of last year, and $1.9 billion through its asset-based lending facility, the Moody's release said. "This liquidity position is not adequate to cover:

1) the approximately $500 million in minimum cash that we estimate Tesla must maintain for normal operations;

2) a 2018 operating cash burn that will approximate $2 billion if Tesla maintains high discretionary capital expenditures to increase capacity; and

3) convertible debt maturities of approximately $1.2 billion through early 2019. These cash needs will likely require Tesla to undertake a near-term capital raise exceeding $2 billion."

"These cash needs will likely require Tesla to undertake a near-term capital raise exceeding $2 billion," Moody's said in the release.

 

[ℬête Noire]

Tesla will have to do another bond offer to make it through the end of the year.

No wonder you're so pissy, pressing Disagree up and down the board. You can't even apply basic reading comprehension to the text you quote. If I had that hard of time understanding the world I'd be kinda angry, too.

ROFL

Time to take out the functionally illiterate trash....bye!

 

[voip-ninja]

No wonder you're so pissy, pressing Disagree up and down the board. You can't even apply basic reading comprehension to the text you quote. If I had that hard of time understanding the world I'd be kinda angry, too.

ROFL

Time to take out the functionally illiterate trash....bye!

Somehow I don't think those who review this exchange and disagreement of views will come away with the POV that I'm the "pissy one".

Buh Bye.

 

[Surfer]

Moody’s is just trolling Tesla, they hate clean air and water. Tesla could have billions in profit and Moody’s would rate them F-. Tesla’s financials are fine, ignore the exodus of finance executives, unfulfilled promises.
Pass me some fruit punch Mr Kool Aid man!

Tesla is f**ked. Let’s move on to more important questions like is the Kool Aid character a man or a woman?

 

[ToyM3]

Anyone here seen the movie, "Who Killed the electric Car"? Well If GM or Ford buys Tesla, history will repeat itself just like what happened with the EV1. The electric car technology will take a back seat to the dark ages and will never see the light of day.

Their bread and butter are the I.C.E product lines. Too bad Toyota discontinued the Rav4 EV, if they just kept plugging away, pardon the pun, they would have been ahead of the pack including Tesla. I would of bought their Rav 4EV, too bad their too high on gas fumes.

 

[bonaire]

Maybe? Hahaha.

By last Q numbers Tesla still had something like 2 years of cash burn in hand, and that was still under conditions of negligible M3 sales. I thought I'd already hit Ignore on 'Hitman007' for past nonsense he'd been spewing. Have now corrected that oversight.

P.S. If somehow it came to pass that Tesla went into receivership without you having gotten around to pulling out your $1K, it'd probably take a little extra time for the courts to get you your money. It's all highly hypothetical what would happen exactly because it'd depend on exact structure of the finances at the time and that's inherently an unknown because it'd have to be a lot different than now and what's reasonably expected from the current position.

Take into account debt payments due within those 2 years, Accounts Payable, mounting salaries, and more importantly - a whole lot of leases coming back from 2015 and 2016 3-year and 2-year leases done in summer 2015 and 2016. If those lessees don't convert to yet another new vehicle to replace, it could be a bit more trouble. They can roll the debt and put off A.P. a while but they simply do not get through 2018 without at least one round of cash infusion. Maybe they make all Model 3 reservation holders pay up front? That would help.

 

[omgwtfbyobbq]

Take into account debt payments due within those 2 years, Accounts Payable, mounting salaries, and more importantly - a whole lot of leases coming back from 2015 and 2016 3-year and 2-year leases done in summer 2015 and 2016. If those lessees don't convert to yet another new vehicle to replace, it could be a bit more trouble. They can roll the debt and put off A.P. a while but they simply do not get through 2018 without at least one round of cash infusion. Maybe they make all Model 3 reservation holders pay up front? That would help.

Did they ever offer a lease on the Model 3? I thought they were always cash only, be it from the new owner or their bank.