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If Tesla liquidated its PP&E, you would have no assets with which to make automobiles and it would go bankrupt.
by xadhominemx 9y ago
If Tesla liquidated its PP&E, you would have no assets with which to make automobiles and it would go bankrupt.
- aaavl2821 9y agotechnically, if they liquidated their PP&E and repaid all of their debt, they could not go bankrupt as bankruptcy is a process specific to companies with debt. but yes, if this happens the company is gone if things start looking really bad, debtholders and equity holders will start clamoring for a change in strategy to preserve their assets. likely they would push to bring in new management to fix manufacturing issues, push for tesla to sell itself, or push for tesla to divest certain parts of its business, or some combination of the above given how valuable tesla is, for anyone to want to buy them in whole or in part would require a massive drop in their stock price, so stock investors would probably be wiped out long before any bankruptcy proceedings started