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Should I worry about Tesla going out of business?

Discussion in 'Model 3' started by matt4EV, May 17, 2019 at 8:25 AM.

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  1. matt4EV

    matt4EV Member

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    Just ordered my model 3 a few days ago. Excited!!!!

    However, recent news is full of how Tesla's stock price has been dropping. Should I worry about it? Will Tesla go out of business? What should I do with my car if it happens?

    What's in your mind?
     
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  2. Joshan

    Joshan Member

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    no LOL....
     
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  3. derotam

    derotam Member

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    Umm, I would just keep driving the car. The car won't(well shouldn't, haha) shut down if Tesla goes out of business. :)
     
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  4. jrh007

    jrh007 Member

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    I’m not an investor, but no, I wouldn’t and I don’t. They just sold a boatload of credits to Fiat Chrysler that will resolve their debt issues. They had a less than ideal quarter, but that’s not a big deal to owners. If they win the autonomy race, they will explode because they will have a massive market cap bump by overtaking Uber and Lyft. Worst case scenario, if the worst happens their assets would be purchased by someone else and they would continue like many defunct manufacturers.

    So no. I wouldn’t worry about that. It’s a great product. Enjoy it.
     
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  5. ngogas

    ngogas Active Member

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    Lol. Fake news. Time to not listen to them and just enjoy the car.
     
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  6. jeffro01

    jeffro01 Active Member

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    Go out of business? No. Be bought up by someone else who may not have Tesla's mission as their primary goal? Possible...

    Jeff
     
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  7. Silicon Desert

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    Wouldn't the time to be asking that question is BEFORE you ordered the car? :D
    I'm not concerned.
     
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  8. 1375mlm

    1375mlm Member

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    It’s a valid concern if you look at how the media has painted Tesla’s “dire” problems

    But keep in mind, people have been asking that same question since Tesla’s first Roadster in 2008.

    Ever since then, every year critics/analysts/shorts have been saying that Tesla would be bankrupt within a year. It’s been 10 years and Tesla is still going strong.

    To be a growing company, they will take losses and will have to take some unusual risks. But they’re expanding in so many areas, the losses they’ve taken are actually quite impressive relative to what they’ve done or plan on doing short term

    Since 2012, I’ve always said to people that by purchasing this car you’re on the leading edge of innovation. That might mean taking a slight risk in a lot of key areas, but ownership of a car from a company that is constantly innovating is quite thrilling, and only leads to the regret of not doing it sooner

    My vote: forget all the BS that’s been spread about the company, and enjoy the car for what it is. 10 years from now, you’ll look back and won’t regret it at all. All the original roadster owners will tell you the exact same.
     
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  9. DocPMM

    DocPMM New Member

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    Hey Matt4EV... I just got my M3 RWD last week, and I had the same concern going in. I was committed to getting an EV, and I had a bigger concern of what it would be like owning an EV that was manufactured and serviced by a predominantly ICE company. I liked the Kona EV, for example, but I knew more about the specs than the guy who set up my test drive. On top of that, I found that much of the recent press on Tesla was being spun in a way that didn't make sense to me. Tesla made the decision to focus growth in Europe and Asia since January, in part because the US tax rebate was being reduced. Many would be Tesla buyers bought just before the $7k rebate expired (You and I missed out on the larger tax rebate). So, to see headlines like "Tesla Demand Weakens" didn't make sense at all. Tesla's debt is a problem, and their sale of credits to Fiat Chrysler won't even put a dent in that debt. I'm not an expert here, but I came to the conclusion that their intellectual property and multiple battery plants (vertical integration) would make the company very valuable even if they could not meet their payments on debt. Demand for Tesla outside the US is very high - I'm not worried about cash flow. Last thought: Tesla is run like a Silicon Valley tech company that makes mistakes but changes course very quickly. So, their headlines, mistakes, and initiatives are at a much quicker pace than the rest of the auto industry. What I'm trying to say is if you don't like the press that Tesla is getting right now, wait a minute. (PS I'm loving the M3 and enjoying a whole new way to drive. I hope you have a similar experience.) P
     
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  10. glide

    glide Member

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    They likely won’t go away but it is possible they will be acquired.

    What that would mean for existing owners? No one knows.

    It’s not something that keeps me up at night.
     
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  11. StellarRat

    StellarRat Active Member

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    We know for sure that Tesla has enough cash to keep going for two years. That assumes nothing changes which is unlikely. I think the worst case scenario is they have to sell out/merge to someone else.
     
  12. Silicon Desert

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    Wo now. You might want to do some more research on that. It isn't going to resolve anything. ;) And let's not get ahead of ourselves about the whole Uber, Lyft, RoboRide thing. Anything can happen there. Right now it is nothing more than talk. Yes, we all love the Tesla and hoping for the best, but no time to exaggerate outcome.
     
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  13. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    No reason to worry, not even a little bit. First Tesla has good cash flow. Second there is no demand problem. Third, expansion (GF3) is on track. Even if the worst should happen, there are so many Teslas on the road and the brand has such a good value that it would just be absorbed by some other company.
     
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  14. Gpa9504

    Gpa9504 Member

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    I definitely thought about that. Can't say it would be the worst thing..actually. However- no way they actually cease operations. Someone (maybe Apple???) grabs them out of bankruptcy and starts running the business...possibly better... maybe???. There is a small chance they wouldn't have to honor the warranties of existing customers- but really no way that would happen either in my opinion. Folks that own Teslas would probably be their core customers!

    Hopefully they stay in business and grow and get their customer service (and service in general) ACT TOGETHER and keep building these amazing cars.
     
  15. kl118

    kl118 Member

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    Think about all the assets that Tesla has (supercharging network, gigafactories, intellectual property). Even if they run out of money, those assets won't go away and there are so many companies out there like Apple or Google who would want to buy those assets and immediately be competitive in the fast growing EV space. If it comes to it, I'm sure Musk will try to sell to somebody who he feels will try to continue with their overall mission.
     
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  16. digitalFan

    digitalFan Member

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    Lots of great companies from the past have disappeared. So yes, it is possible that Tesla also will be gone one day or be bought by a competitor. It is not big enough like GM to get government bail out should another recession like the one during 2007~08 happens.

    In my humble opinion, they should remain focused on making lots of Model 3's with high reliability and low cost. That's how Corolla, Camry, Prius, Civic etc. became so widely popular across the globe.

    I love my Model 3 and I love EAP. But I don't believe for a moment that FSD will be a reality in next 10 years. Tesla should not try to oversell FSD. That will be a stupid mistake and generate lots of negative press because they will not be able to deliver.
     
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  17. jrh007

    jrh007 Member

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    I should have been clearer that I meant their immediate debt problems, which between 2.3B in credits and 2B in new offerings, are somewhat overblown.
     
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  18. Tam

    Tam Well-Known Member

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    I am not worried about Tesla's financial status.

    It's a growth company so it spends a lot of money to grow.

    However, it has shown quite a few times that if it wants to, it can slow down and make profits at will.

    Stock goes up and down so I am not worried about it either unless I am a short term investor.

    If it's bankrupt, there are many who want to buy it at a bargain price.

    In the worst scenario, there are Do-It-Yourself experts around the country who would love to keep our Tesla running.
     
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  19. mtndrew1

    mtndrew1 Member

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    I am reasonably confident they’ll pull an Amazon with all the irons they have in the fire and remain a successful going concern for years to come.

    That said, any automaker on earth would LOVE to have their hands on Tesla’s IP, battery supply, customer base, and charging network. Just because Tesla’s patents are open doesn’t mean anyone knows what to do with them. Just witness the European EV flops hitting the market right now. In dire straits Tesla would be gobbled up by any number of automakers with support of the existing fleet.

    As a customer I don’t see any reasonable path to warranty, service, or parts disruption during the useful life of my car.
     
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  20. Jazz_MIII

    Jazz_MIII Member

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    I've read more times than I can count the positive impact Tesla is having on the EV market, their record-setting NHSTA safety ratings, and their sustainability measures to ensure a green impact on the environment moving forward. They are a pillar for the future of sustainability and as such, you will read a lot of "hype" about how we need to worry about their ability to last because quite frankly, the fossil fuel industry feels threatened about the transition to electric vehicles!

    Not to worry, my friend!
     
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