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>After all, even if Tesla stock goes to zero, and its bonds default to pennies-on-the-dollar, its factories and software repositories and human capital will all
by chki 9y ago
>After all, even if Tesla stock goes to zero, and its bonds default to pennies-on-the-dollar, its factories and software repositories and human capital will all be there, and no Chapter 11 court or committee will be blind to the fact that they’re worth far more as a coherent unit than they would be as separate assets.
Well, to me that statement seems to be at least dubious. If the company is loosing money and goes bankrupt it is obviously not worth something in its entirety - at least in its current form. (And I highly doubt that simply restructuring Tesla would do something about that.)
This does however not neglect the premise of the article. Even if Tesla would no longer exist in any form, there has been some creation of value for society as a whole.
- paulpauper 9y agoregarding human capital, when a company goes bankrupt many employees lose their jobs. the current stock price takes into account all those variables. When a bankrupt stock goes to near zero, that takes into account totality of all the intellectual property, factories, etc.
- mjw1007 9y agoIt's worth something if it was only losing money because it couldn't afford to service its debt.
- empath75 9y agoTesla going bankrupt wouldn’t be an isolated event. It would probably be something like the aol-time Warner merger or the Lehman Brothers bankruptcy and trigger a general market correction.
- neurotech1 9y ago> Well, to me that statement seems to be at least dubious. If the company is loosing money and goes bankrupt it is obviously not worth something in its entirety - at least in its current form. (And I highly doubt that simply restructuring Tesla would do something about that.) Bankruptcy means the company has more debt obligations than assets, and has ran out of cash. It does not mean the company assets are worth nothing. In a theoretical Chapter 11, Tesla Energy and the "battery factory" would still be worth many billions, even if they never sold another car. Tesla is doing pretty good for a highly capital intensive and growing company.
- thewhitetulip 9y agoIt has already done it's job. "EV were impossible to build." just a few years ago when the Israeli PM met with top five auto manufacturers. Then came Tesla and now the fastest car is Tesla Roadster.
- Cthulhu_ 9y agoNot yet, it's not been released yet and I'm fairly sure there's not been independent tests yet.