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The "Is Tesla Going Bankrupt?" thread

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Thank you guys for the advices.

Here we go:

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I don't know when it's gonna be delivered, I chose the grey next gen seats and it says mid-2017, wait & see.
 
I'm a Tesla owner and investor. I don't think they're going bankrupt.

The good news is that if they do go bankrupt the company won't simply evaporate. They've built too much of a brand. Someone will acquire them. That means that service, support, development etc will likely continue on even if Musk goes bust.

The risk here is really really low. The American ICE manufacturers were MUCH closer to going bankrupt in 2008/2009 than Tesla is today and people still bought their cars.

I want someone to make the argument that we should think of Tesla like a bank. Too big to fail under the right administration. All jokes aside, I think MikingCO is correct. Buying a Tesla car is low risk in terms of buying a car for the reasons mentioned. Bankruptcy in the United States is badly misunderstood. Tesla would be bought out via an M&A before bankruptcy ever happened. Even if it did, you're looking at a chapter 11 with buyers clamoring to buy Tesla or viable parts of it or Tesla would just keep operating while deferring creditor payments for a while to turn the corner.

The car purchase and stock purchase are not one and the same.

I think if Tesla did file for chapter 11 if access to cash runs out, current investors would get slaughtered but Tesla would operate in bankruptcy for quite a while and not have to worry about making any payments to specific creditors so it could continue to operate and turn the corner to profitability. I have a feeling Tesla would get there, re-emerge from bankruptcy and the company would emerge very strong with a new class of investors ready to reap the benefits of investing in the reorganized company. People and institutions holding the stock now could get battered or completely wiped out though while Telsa rises to new heights post bankruptcy.

EDIT: someone above already beat me too the "too big to fail argument!"
 
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Hey all,

(again excuse my english, doing my best to be understandable)

so, I'm about to sign next week to get my Model S soon and my associate keeps saying that it's a really bad idea, that I should wait because Tesla is not far from Bankrupt... He doesn't know anything about Tesla, Musk etc. but he's into the "stock options" thing. Buying selling etc and he says that the banks ain't happy with Tesla and he won't buy one before waiting 2-3 years.

Personally, I can't even imagine that, regarding to all the money they're spending to grow but well, I don't know. I've read and seen a lot about Musk and Tesla and the start wasn't very good for them. Don't know what to think.

Let's say Tesla goes Bankrupt, what will happen to people who bought their cars ? Where are we gonna repair and make the services ? What about the Superchargers ?

I'm pretty sure that many of you will laugh reading this, but by keeping telling me that he starts to scare me just before my contract beeing signed.

Give me please some arguments to tell him that he's totally (or partially) wrong.

Thank's guys !

Thanks for starting this post. I had share with one of my clients yesterday how excited I was for getting the model X and he rain on my parade by giving me a financial report.

I did get worried and started doing my own research and I did see that he was right about the numbers.

So I'm glad I found this thread and thank you everyone for sharing. I agree with all of you guys and now i to feel confident in signing the dotted line.
 
What makes you think they are going to go bankrupt? You can’t really look at their fundamentals the same way you would look at a long established company. They are putting all of their money (and then some) into expansion. Model 3 ramp up is only slightly behind schedule. We’ll know in a couple of weeks if they are hitting their latest targets but depending on how long you plan on having the car, I can’t see them shutting their doors in the near future. Someone would buy them before they disappeared. That said, I’m not worried at all.
 
MODERATOR: This thread has been designated as the catch-all for the various similar threads on this topic. If you are looking for your otherwise disappeared post, it likely is here.

Okay so I get called a Tesla fanboy all the time here but... I'm seriously concerned about this article I just read and I realize I don't know enough about what I'm reading to know if it's FUD or real...

Tesla is just months from a total collapse, says hedge-fund manager

My Model S lease is up in November, I only have a few months left before I have to order my next Tesla... Is there going to be a Tesla in a few months or am I grossly overreacting to one article?

Thanks,
Jeff
 
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Sorry for the thread dig, but I'm feeling myself in the same scenario as the OP.
I just submitted order for my X75D.

Is anyone worried?
Not worried. I've been investing in TSLA for over 5 years. The "experts" (read: stock shorters) have been saying Tesla will go bankrupt almost weekly. Yet somehow the company just gets bigger and stronger all the time. I've made enough to buy 10 Model X's if I had a place to park them. Tesla is about to make another major growth spurt with addition of Tesla Energy expansion of sales and Tesla Semi. This has the shorts scared and you will see a flurry of articles claiming bankruptcy, fires, recalls, more competition coming, on and on, yawn......
 
The one statement at the top of the article sort of tells it all:
"Thompson manages $25 million and his Tesla TSLA, -7.80% short is the fund’s biggest position. To be fair, he’s been betting big against Tesla for years, which, of course, means he’s endured some brutal stretches."
John Thompson of Vilas Capital Management has a vested interest in having Tesla fail.
 
What makes you think they are going to go bankrupt? You can’t really look at their fundamentals the same way you would look at a long established company. They are putting all of their money (and then some) into expansion. Model 3 ramp up is only slightly behind schedule. We’ll know in a couple of weeks if they are hitting their latest targets but depending on how long you plan on having the car, I can’t see them shutting their doors in the near future. Someone would buy them before they disappeared. That said, I’m not worried at all.
I don't THINK they're going bankrupt, I'm curious why there are so many articles shorting them.

I see nothing but innovation coming out of Musk's labs, so that is why I'm confident to buy one.
Just wanting to feel the pulse of other investors.
 
I was actually discussing this article with a coworker and came up with a better summary for it:
Tesla is going to collapse says guy who stands to make money off of Tesla’s stock price declining

And since short selling isn't exactly the most understood thing by non-investors, here's a brief summary about how it works if you're unaware or unsure the exact details.


While it isn't necessarily a rebuttal to this article, this video is a good summary about why Tesla, or any company, doesn't go bankrupt despite "losing" lots of money:

 
Tesla stock has been down recently, and their future depends on Model 3.
If Model 3 makes it - Tesla will skyrocket.
If Model 3 does not make it - Tesla will tank.

Given that they are shipping Model 3, and making progress on it, and people are not cancelling reservations, I'd bet that they will make it.
Some analyst knows this too, and is trying to spread negative news, to get a better deal on the stock price.

And that's all it is. Even in the worst case if Tesla goes bust, they will get acquired, and some other car manufacturer will support it.
 
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The price of tesla stock is very clearly way too high given company value in my opinion. This leaves it ripe for short sellers. So short sellers have been hitting on Tesla with articles trying to get the price to fall for many many months. Bigtime doom and gloom is what they publish trying to convince stockholders they need to panic sell now to get the price down so they can short sell and make millions. I've made approximately $92k profit over the years on Tesla stock. But I own none now. A reduction in price is coming but I honestly do not believe bankruptcy is coming.

I take delivery of a red model x 100D this afternoon.
 
Sorry for the thread dig, but I'm feeling myself in the same scenario as the OP.
I just submitted order for my X75D.

Is anyone worried?

Ordered mine in April 2015. Back then, and though I cannot pretend on being an early adopter, I definitely was worried that Tesla would go bankrupt.
But I sure did not want that to happen. Only thing to do was to buy one of their cars, so modestly helping on that front, but much more so driving it as our daily family car: the more Tesla on the road the better.
I wasn’t expecting the car to be so great. It’s really a unique experience.

Congratulations on your choice, and don’t worry. You will only regret not having done it sooner.
 
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I don't THINK they're going bankrupt, I'm curious why there are so many articles shorting them.

I see nothing but innovation coming out of Musk's labs, so that is why I'm confident to buy one.
Just wanting to feel the pulse of other investors.

There are a lot of articles shorting Tesla because there are a lot of people who wish Tesla would go bankrupt - some so they can profit from the failure directly, more who are finding what they thought were secure profits endangered by Tesla's reshaping of whole industries.

And, of course, Tesla is just as creative in the financing end as they are everywhere else, so some folks who look at traditional historical measures for profitability correctly point out Tesla doesn't follow their rules.
 
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And about those headlines, mostly from bear media and shorters, they’ve been around since I joined the owners community and probably before.
As mentioned above, Tesla is making a decent profit on each of their cars, the only difference is that it is all reinvested in the dev and growth.