Hey there, as you all know im a Tesla and Solar City bear and i have been sharing my thoughts with you for quite some time. So my opinion is obviously very negatively biased against both stocks. Now thats not just stock but also bonds of Solar City are trading at very distressed levels: Bonds Detail Bonds Detail So you can buy SCTY 2018 bonds today and more then double your money in less then 3 years IF they can repay it i wouldnt do it but it seems much better investment then the stock at this point (well as much as Scylla seems nicer then Chalibdis but still) So now to the actual question: How much could the bankruptcy damage Musks reputationon ? Solarcity has some very aggressive and misleading accounting practices (the misleading part is my opinion and not a fact, thus shouldnt be discussed), in case of bankruptcy there will be tears of investors, those retail guys whom he sold Solar Bonds, and Tesla accounting would be looked upon with much more scrutiny. There will also be tons of dirt poured upon Musk. This is my bear point, i would like to hear counter arguments from Bulls. Remember Risk is not being right, Risk is being wrong.