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The "Is Tesla Going Bankrupt?" thread
- Thread starter Swissmoneychf
- Start date
Let’s not forget the share price in Sept 2014, that’s 3 and a half years ago, was higher than it is today before we start bragging too much.
That's a nice cherry you've picked. Let's also not forget that the share price 5 years ago was ~$40, about 15% of today's close.
They certainly could go BK by then end of the year. Moody's downgrade shut them out of the bond market and the current share price hardly is conducive to a another capital raise. It gets worse: Moody's says if they aren't at 25K/wk on M3 by end March, another downgrade is coming. Tesla is a strong brand and would likely continue, with the new owner aquiring for "penny's on the dollar" So, if not an investor, you should be fine..
well, what if the unlikely will happen? (media writes about it). will the deposits go down the drain, or are they secure? (i did not read the small letters that well when i signed up)
RangerRick
Member
In theory, you could get paid back. In practice, basically every other investor is ahead of us in line to get money if Tesla were to be liquidated so chances are there would be nothing left by the time they get to paying us back.
I suggest you do not reserve a car and if you have reserved already hurry to cancel asap to get your money back. Seriously, why would you risk a 1000.00 while you can go buy a Bolt and get full tax credit, really.
anticitizen13.7
Not posting at TMC after 9/17/2018
First, take what the FUDsters are saying with a grain of salt. Spreading fear (through insinuation and sometimes outright lies) in order to damage the stock price is part of how they make money.
The honest answer is: nobody knows for sure.
I have watched Tesla for almost 10 years now, and the company has been in perilous financial waters for almost all of that time. The 2008 Financial Crisis nearly bankrupted Tesla, and they were saved only by a supplier contract from Daimler. Since the 2010 IPO, Tesla has relied upon additional Secondary Offerings and Debt Offerings to fund its expansion and continued operation.
In 2013, during the ramp-up of Model S production, Tesla nearly went bankrupt again. The company survived through a herculean effort to produce Model S and convert reservations to sales, and these efforts resulted in a small profit in Q1 of 2013. The saga is detailed in Ashlee Vance's book: Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future (https://www.amazon.com/Elon-Musk-SpaceX-Fantastic-Future/dp/006230125X)
As for the practical consequences to car owners, I would expect that a Bankruptcy and Reorganization would not affect vehicle service. The company doesn't disappear in this scenario.
If Tesla can prove in the next few months that its new manufacturing line works, I believe it is likely that both debt and equity markets will maintain willingness to fund Tesla's expansion and operations. Tesla's ability to produce both Model S and Model X in greater quantities than anyone expected, allowed the company to raise part of the money to fund Model 3. Originally, Tesla's plan was to build 20k Model S per year. The company is now at 100k total/year for Model S and X.
A leaked email last week (Tesla says Model 3 production at ‘over 200 units per day’, pushing to get to 2,500 units/week, says report) suggests that Tesla was at roughly 1400 units of Model 3 per week (approximately 200+ cars/day), with a goal of getting to over 2500 units produced during this week.
I have always been upfront about Tesla as a company: The risks are extraordinarily high, and I strongly advice people to invest in TSLA only what they can afford to lose. However, Elon Musk has a history of accomplishing (albeit sometimes years late) his aims despite seemingly impossible odds, whether in SpaceX or Tesla. This is why I believe that Tesla is worth a gamble, despite the long odds.
The honest answer is: nobody knows for sure.
I have watched Tesla for almost 10 years now, and the company has been in perilous financial waters for almost all of that time. The 2008 Financial Crisis nearly bankrupted Tesla, and they were saved only by a supplier contract from Daimler. Since the 2010 IPO, Tesla has relied upon additional Secondary Offerings and Debt Offerings to fund its expansion and continued operation.
In 2013, during the ramp-up of Model S production, Tesla nearly went bankrupt again. The company survived through a herculean effort to produce Model S and convert reservations to sales, and these efforts resulted in a small profit in Q1 of 2013. The saga is detailed in Ashlee Vance's book: Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future (https://www.amazon.com/Elon-Musk-SpaceX-Fantastic-Future/dp/006230125X)
As for the practical consequences to car owners, I would expect that a Bankruptcy and Reorganization would not affect vehicle service. The company doesn't disappear in this scenario.
If Tesla can prove in the next few months that its new manufacturing line works, I believe it is likely that both debt and equity markets will maintain willingness to fund Tesla's expansion and operations. Tesla's ability to produce both Model S and Model X in greater quantities than anyone expected, allowed the company to raise part of the money to fund Model 3. Originally, Tesla's plan was to build 20k Model S per year. The company is now at 100k total/year for Model S and X.
A leaked email last week (Tesla says Model 3 production at ‘over 200 units per day’, pushing to get to 2,500 units/week, says report) suggests that Tesla was at roughly 1400 units of Model 3 per week (approximately 200+ cars/day), with a goal of getting to over 2500 units produced during this week.
I have always been upfront about Tesla as a company: The risks are extraordinarily high, and I strongly advice people to invest in TSLA only what they can afford to lose. However, Elon Musk has a history of accomplishing (albeit sometimes years late) his aims despite seemingly impossible odds, whether in SpaceX or Tesla. This is why I believe that Tesla is worth a gamble, despite the long odds.
Losing $1k may be a lot better than the people who already have their cars losing access to supercharger stations, sw updates, FSD....
McHoffa
CyberOwners
Because it's a Bolt? Seriously, I wouldn't pay more than $20k for one.
seattlite2004
Active Member
Good advice on getting a Bolt! At least $7K dealer discounts, then full $7.5K Fed Tax Credit... Price wise... It's dang compelling. Specs, features, maint costs...also compelling. L3 charging and style...not that compelling.
John Beans
Member
In the event that Tesla cannot remain independent, it's well worth $1000 to the acquirer to still have you as a customer. Manufacturers today routinely pay MUCH higher incentives to customers. Washing out that $1000, even given that it probably wouldn't survive formal liquidation preferences, is not something that is likely to happen.
Even if Tesla got busted up in an ugly liquidation—no continuing operations, most debt holders stiffed—every other car manufacturer would run ads saying, "Hey, Model 3 reservation holders: want $1000 off of our _____?"
Even if Tesla got busted up in an ugly liquidation—no continuing operations, most debt holders stiffed—every other car manufacturer would run ads saying, "Hey, Model 3 reservation holders: want $1000 off of our _____?"
I’m in a similar boat. I’ve got zero worries about getting another one. The brand is too powerful to die.
Also, I suspect that they’re near the bottom of the trough. I’ve been through line startups. I’ve seen nothing to tell me that anything is out of the ordinary at Tesla. Starting up a line is inevitably a colossal mess. All the time. For all manufacturers. Tesla is just more under the microscope than the rest.
DanL3
Member
Worse would be no warranty on cars that are known to need love from the service center on a regular basis.
roblab
Active Member
What if the MEDIA GOES BANKRUPT?!!!!! All the money I spent on that 55" TV goes down the drain!
Please.
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