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He's been a long-time Tesla short-seller, so this may well be just seeing what he wants to see. It doesn't mean he's wrong, but if Tesla sees themselves running
by eloff 9y ago
He's been a long-time Tesla short-seller, so this may well be just seeing what he wants to see. It doesn't mean he's wrong, but if Tesla sees themselves running out of money in 3 months they must have a plan lined up already. No company that size would just ignore the issue this late in the game - they'd be raising money from sale of stock, which they don't seem to be doing, or from selling bonds, which they don't seem to be doing. My guess is that means they have private funding lined up to cover the shortfall (if indeed he's right in the first place that they will run out of money in 3 months - which I don't think we should take at face value.)
- ealexhudson 9y agoThat's all true. Equally, people cancelling Model 3 orders have found getting their money back taking many months - it does seem like they're managing cashflow very tightly. I would find it unlikely they don't have a plan in place, too. They desperately need to get supply up and moving though...
- mikeash 9y agoSome people have gotten refunds months late, others have gotten refunds almost instantly. I think they’re just disorganized.
- ac29 9y agoThe most recent bond sale I can find was less than 2 months ago: https://www.bloomberg.com/news/articles/2018-01-31/when-it-comes-to-tesla-car-bonds-buyers-simply-can-t-get-enough https://www.bloomberg.com/news/articles/2018-01-31/when-it-c...
- eloff 9y agoAnd it was heavily oversubscribed. It doesn't look like Tesla will have difficulty raising more capital in the near term then.
- nopriorarrests 9y ago>they must have a plan lined up already Coincidentally, people who should be responsible for such plan promptly left the company last month. Tesla’s VP of Finance, Susan Repo, has left to become CFO of another company, Bloomberg News' Dana Hull reported late Tuesday. The departure comes less than a week after Tesla’s chief accountant Eric Branderiz left the company for "personal reasons," the company disclosed on March 7. http://markets.businessinsider.com/news/stocks/tesla-stock-price-slides-after-second-finance-exec-leaves-company-is-less-than-a-week-2018-3-1018699013 http://markets.businessinsider.com/news/stocks/tesla-stock-p...