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TSLA - Last man standing?

Discussion in 'TSLA Investor Discussions' started by Russell, May 1, 2013.

  1. Russell

    Russell Member

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    Coda just file for bankruptcy. Watch what tsla does when that news sinks in.

    U.S. electric car maker Coda files for bankruptcy

    http://www.reuters.com/article/2013/05/01/coda-chapter-idUSL2N0DI05J20130501



    CODA Holdings, Inc. to Restructure Business around Energy Storage
    May 1, 2013 -- Los Angeles, CA -- CODA Holdings, Inc. (“the Company” or “CODA”) announced today that it is focusing its business strategy on the growing energy storage market. CODA plans to implement the restructuring of its business through a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. The voluntary petition was filed today in the District of Delaware. This process is intended to enable the Company to complete a sale, confirm a Plan and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete.

    FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide debtor-in-possession (DIP) financing to enable the Company’s energy storage business to remain fully operational during the restructuring process. The Company has filed a motion with the bankruptcy court for approval of the consortium, or its designee, as the stalking horse bidder in the sale process to acquire the Company post-bankruptcy. In addition, the Company will seek to monetize value of its existing automotive business assets.
    "After concluding a comprehensive review of our strategic options, the Board of Directors, management team and senior lending group have concluded that focusing on the Company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, Chief Executive Officer, CODA Holdings, Inc. “We believe the restructuring process that we have entered into today will enable the Company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”
    CODA diversified its business and formed CODA Energy two years ago. CODA Energy’s products are based on the same core technology, which includes its proprietary battery management and thermal management systems, found in CODA’s vehicles adapted for stationary energy storage applications. The Company designs and builds scalable, custom energy storage solutions optimized for generation, distribution and behind-the-meter applications for commercial, residential and industrial end users. The Company is currently shipping product, and has a robust pipeline of new customers and existing installations in the field.
    CODA’s legal advisor in connection with the restructuring is White & Case LLP. Emerald Capital Advisors serves as its Chief Restructuring Officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring. Sidley Austin LLP is serving as FCO MA CODA Holdings LLC’s legal advisor.

    http://www.codaautomotive.com/
     
  2. NigelM

    NigelM Recovering Member

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    Could go either way....
     
  3. mitch672

    mitch672 Active Member

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    Yes, Coda's failure leaves Tesla as the only true success story in a ground up EV (and the only play in a true EV now as well)

    CODA managed to sell 100 vehicles in 6 months, Teslas makes and sell more than that in a week.

    Teslas has almost nothing in common with Coda...

    Tesla is a first mover and leader in their industry, CODAs vehicle looked like an ugly version of an ancient sedan design
     
  4. Citizen-T

    Citizen-T Active Member

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    The Market won't let facts get in the way of a good story in the short term.
     
  5. NigelM

    NigelM Recovering Member

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    Leaf?
     
  6. Elshout

    Elshout Member

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    Everyone forgot Toyota RAV4 EV, powered, of course, by Tesla.
     
  7. NigelM

    NigelM Recovering Member

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    Figured it's worth starting a new thread on the short/long term impact of Fisker/Coda demise.

    Will the market fall out of love with EV start-ups? Was it ever in love? Or will Tesla be even more attractive as an investment?

    - - - Updated - - -

    Arguably the RAV4 wasn't a "ground up" build.
     
  8. TD1

    TD1 Member

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    its pretty sure that Codas bankruptcy will be seen as proof that EVs are the wrong path and there is no market for EVs... by a lot of nervous investors.
    So it will affect the stock around -2%, but thats just my guess
     
  9. mitch672

    mitch672 Active Member

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    The Leaf is just 1 vehicle in Nissans lineup, Nissan cannot be considered a "pure EV" play stock.
    The thread was originally in the investors sub-forum.

    The Leaf is a fine city/local use EV, it will not compete as a highway cruiser or a replacement vehicle for a 1 car household (or a single person)

    - - - Updated - - -

    Or proof that all of the other EV startups got it wrong, and a Tesla got it right :)
    The proof gentlemen, as they say, is in the eating, and Tesla tastes mighty good...
     
  10. NigelM

    NigelM Recovering Member

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    I wasn't suggesting that Nissan be considered a pure EV stock, just that the Leaf is a ground up, pure EV. My gut feel is that many investors will shy from the EV segment for a while, but in the long-term it may well be that Tesla "owns" the EV market and THAT will be attractive to investors.


    BTW, this thread still is in the Investors sub-forum.
     
  11. mitch672

    mitch672 Active Member

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    The Leaf is partially a ground up EV (it's uses many common parts with their "Versa")
    Their design has already proven problematic (read numerous complaints of lost range in high heat environments such as Arizona and Texas). It's has such a puny highway EV range, most won't even consider it for anything other then as a second car for local use by the stay at home spouse, or for a primary commuting vehicle, assuming it is in range or you have charging at work.

    Basically, the Model S overcomes every single objection most people have to the Leaf:

    It's ugly
    It has a 73 mile highway range
    It suffers from range loss in hot climates because it has no liquid thermal management

    The Model S? Solves all of those issues. Anyway, I wouldn't consider the Leaf "competition" for the Model S
     
  12. NigelM

    NigelM Recovering Member

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    Ouch. I'd call it weird looking, but otherwise you're right on all counts.

    TSLA has had close calls so is there a factor that is leading them to success where the others failed? Maybe the current bull run reflects that Tesla is gaining a market leading position and should stay there if they can keep the financials on track.
     
  13. DonPedro

    DonPedro Member

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    As compared to the rest of the world, Norway has a pretty good pickup of EVs. The Leaf is very popular, and has many fans (quite a few of which are nevertheless now getting Model S).

    I mention this to make the point that for the target segment (non-roadtrippers), the Leaf is a good car.

    - - - Updated - - -

    As compared to the rest of the world, Norway has a pretty good pickup of EVs. The Leaf is very popular, and has many fans (quite a few of which are nevertheless now getting Model S).

    I mention this to make the point that for the target segment (non-roadtrippers), the Leaf is a good car.
     
  14. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    The Coda had the style and power of a Honda Civic from 2001. Not much appeal. Doesn't surprise me in the least that the company has gone into bankruptcy.
     
  15. Cattledog

    Cattledog Active Member

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    TSLA = Great design and great performance
    FISKER = Great design and poor performance
    CODA = Poor design and average performance

    I bought a Tesla. I did not buy a Fisker. I would not have bought a 265 mile CODA.

    Design matters. Performance matters. By inspection, TSLA matters.
     
  16. brianman

    brianman Burrito Founder

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    Can we avoid this terminology please?
     

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