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This is true, but they issued all forms of debt already - shares, bonds, you name it. Any further delays and they can literally go bankrupt. And this is physi
by xchaotic 9y ago
This is true, but they issued all forms of debt already - shares, bonds, you name it.
Any further delays and they can literally go bankrupt.
And this is physical manufacturing do you can't ship beta and fix later for most things.
Also many have vested interests to see them fail - short traders, other car manufacturers, oil industry. I wouldn't rule out a simple sabotage - seems fairly low risk if it means oil industry can keep extracting profits for 10 years longer.
- asdfasdfas112 9y agobankrupt within the next year? no chance.
- ccorda 9y agoThree months ago they were oversubscribed for their debt offering. It might cost a little higher rate, but if they need more money they can get it and they're not going bankrupt. The well isn't dry. To put numbers on it, Tesla projects by end of next year to be producing 10,000 Model 3 a week at an average price of $42,500 with 25% gross margins. That is $106,250,000 per week in gross profits. Over 50 weeks, that's 5.3B in gross profits and over 21B in revenue. They have high SG&A relative to other automakers, but there will be plenty of cash flow to fund further ambitions and pay off the debt it took to get them there unless they're grossly overstating profitability, capacity, or demand.
- thisisit 9y agoProducing is not same as profits, sure it can be considered assets in form of "finished goods" but not real profit until they sell all the cars.
- rcMgD2BwE72F 9y agoWhat issues have been reported so far other than production bottlenecks?
- senectus1 9y agothey just borrow to pay off and set their debt deadline further back a bit.