Ahhh, yeah like others have said, there are a fair number of shorters out there who want/need Tesla to fail to to make any money. Those articles are mostly FUD and wishful thinking.
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The "Is Tesla Going Bankrupt?" thread
- Thread starter Swissmoneychf
- Start date
Ahhh, yeah like others have said, there are a fair number of shorters out there who want/need Tesla to fail to to make any money. Those articles are mostly FUD and wishful thinking.
Amazon has not made a penny since going public, but you don't see Amazon going bankrupt.
Amazon has made a lot of money since going public....
arcus
Active Member
The stock on sale right now. Get it while it lasts.
TaoJones
Beyond Driven
While there are a lot of things about which to be concerned with regard to Tesla, Tesla vehicles, and TSLA, bankruptcy is not significantly one of them at this time.
Over time, you’ll be able to discern the different agendas of some of the more prolific media purveyors. For example, don’t expect positive coverage from the LA Times, and note which brokerage houses have which price targets when they issue their “talking points”.
Enjoy your car and welcome to the family!
Over time, you’ll be able to discern the different agendas of some of the more prolific media purveyors. For example, don’t expect positive coverage from the LA Times, and note which brokerage houses have which price targets when they issue their “talking points”.
Enjoy your car and welcome to the family!
Uncle Paul
Well-Known Member
Not sure this has been mentioned before, but the there are only two auto manufacturers in the United States that have NOT gone bankrupt. Ford and Tesla.
Some companies go bankrupt many times over their lives. Some people too.
Bankruptcy has a bad reputation, but it just means giving struggling companies a fresh start.
Some companies go bankrupt many times over their lives. Some people too.
Bankruptcy has a bad reputation, but it just means giving struggling companies a fresh start.
Uncle Paul
Well-Known Member
Only two US car companies have NOT gone bankrupt...Ford and Tesla.
Companies go bankrupt all the time, gets rid of debt and they get a fresh start.
Some companies, and people go bankrupt multiple times.
Do not believe that Tesla will go bankrupt. They only have negative cash flow because they are investing tremendous amounts of $ in developing the future of clean electric vehicles, solar power and protecting humanity from potential extinction.
Elon is not interested in profit, but the accomplishment of his goals. If profit was essential to these accomplishments, he would be quickly able to generate tremendous profits. Far easier to just borrow the $ and expand even faster.
Companies go bankrupt all the time, gets rid of debt and they get a fresh start.
Some companies, and people go bankrupt multiple times.
Do not believe that Tesla will go bankrupt. They only have negative cash flow because they are investing tremendous amounts of $ in developing the future of clean electric vehicles, solar power and protecting humanity from potential extinction.
Elon is not interested in profit, but the accomplishment of his goals. If profit was essential to these accomplishments, he would be quickly able to generate tremendous profits. Far easier to just borrow the $ and expand even faster.
nice clickbait, isn’t it ;o)
Let’s just assume this happens...
Tesla is just months from a total collapse, says hedge-fund manager
What would happen to my deposit?
Let’s just assume this happens...
Tesla is just months from a total collapse, says hedge-fund manager
What would happen to my deposit?
The article was written by a very small hedge fund manager who has a stake on TSLA going under so he can make some serious dough.
He is basically betting on Tesla going down so he is gonna keep on trying to scare people out of been a full on supporter like you and most of us.
You may or may not be a creditor of Tesla during the bankruptcy proceedings and, along with all other Roadster and Model 3 reservation holders, will be about millionth in line for your money. So, effectively, it will be gone. End of thread.
If you are seriously concerned and don't know if this is FUD, you're not a Tesla fanboy.
I'd expect that the deposit created a contractual arrangement between you and Tesla that would be voided because Tesla could not perform its part of the deal. Having said that, a business does not shut down because of Chapter Eleven - which is by fat the likeliest path if required - it can be run as a going business and can certainly make your car and thousands of others..as the debtors decide how the company should be re-organized. If the debt holders were given equity in lieu of repayment then Tesla would be running as a new business - only the shareholders would be losers.
Esme Es Mejor
Member
A Tesla bankruptcy is always just around the corner... like room temperature fusion & flying cars.
If you hold any stock you most likely will lose it all as all the "good assets" will be reincorporated as a new company by debtholders (say New Tesla, Inc.) leaving behind all bad parts of the company in its original entity (Tesla, Inc.) which will have no value.
For example, if the Model S is killing Tesla in warranty costs, they may propose to leave the liability of honoring the Model S warranty to the old part of the company - which no longer will operate. Not saying that this will happen but just saying that this isn't out of the realm of possibility.
jeffro01
Active Member
Appreciate the video... Seriously. Well done.
My goal here is not to sound naive or anything like that and by and large I appreciate everyone's reply with the exception of one... I don't focus on the stock price at all but every so often I see something that catches my eye...
Thanks,
Jeff
There is a lot of push-back from the rest of the car industry because they are heavily invested in ICE technology and don't want to change. The oil companies too don't want to see electrics dominate the market, but they are less concerned because even if the car industry was able to achieve 50% EV production by 2025 (physically impossible with current and planned battery production), they would still be selling plenty of oil for decades to come with legacy fleets and other transportation that can't switch to electric easily like aircraft and ships.
The car industry is constantly lobbying congress to relax fuel efficiency plans that will force more EVs onto the market. One of their main claims is it is just impossible to meet those standards because there is no viable alternative to fossil fuels. If Tesla succeeds, that torpedoes their argument, so they need to keep up the FUD that Tesla is on the verge of bankruptcy.
If a pure EV company succeeded, then they are all screwed. Not only is their lobbying out the window, but customer demand will force them to retool everything and bring out EVs to compete with Tesla. That requires taking multi-billion dollar investments in ICE technology and tossing it in the dumpster.
As part of their lobbying, they also get investment writers on their side with evangelists like Bob Lutz telling anyone who will listen why Tesla is barking up the wrong tree.
In any case, I wrote this in December 2015 on how start ups fail and why Tesla is unlikely to fail at this point:
Why I Think Tesla is Unlikely to Fail
Amazon has not made a penny since going public, but you don't see Amazon going bankrupt.
It is a good analogy, but Amazon has turned a profit the last couple of years. They did go something like 20 years after going public without turning a profit though. Tesla is about where Amazon was in 1998 or 1999 when they began to break out from just selling books. Most people thought they were crazy trying to sell everything, but they now have Walmart worried.
Musk has always run Tesla near the edge of bankruptcy which is probably why he can't hold onto the senior financial officers. As an officer you are responsible and if you take actions that are not in the best interests of your shareholders you risk civil and criminal liability.
As a fan, and owner, I question: Why didn't Tesla raise capital with a stock sale back when the stock was flying high in the mid/upper 300s? Why did they instead do a debt offering? It made no sense then and now they have been downgraded and the stock has dropped so they will have a harder time raising funds and it will be even more dilutive. Seems like a major mistake unless there was a good reason:
I've read 2 rumors/theories as to why...
1. (popular short theory): That TSLA is secretly under SEC investigation and cannot sell stock without disclosing this fact.
2. That Elon had too much Greed/Pride to do another dilutive stock offering.
Disclosure: I hold no positions in TSLA, just a fanboy..
Thoughts?
As a fan, and owner, I question: Why didn't Tesla raise capital with a stock sale back when the stock was flying high in the mid/upper 300s? Why did they instead do a debt offering? It made no sense then and now they have been downgraded and the stock has dropped so they will have a harder time raising funds and it will be even more dilutive. Seems like a major mistake unless there was a good reason:
I've read 2 rumors/theories as to why...
1. (popular short theory): That TSLA is secretly under SEC investigation and cannot sell stock without disclosing this fact.
2. That Elon had too much Greed/Pride to do another dilutive stock offering.
Disclosure: I hold no positions in TSLA, just a fanboy..
Thoughts?
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