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Jim is clearly wrong, and trying to sell you something. Even if Tesla as you know it today goes bankrupt, their assets are worth a lot more together then broken

Jim is clearly wrong, and trying to sell you something. Even if Tesla as you know it today goes bankrupt, their assets are worth a lot more together then broken up and sold for parts. The worse case scenario is that tesla is sold off to private equity firm for a fraction of todays market cap, but to say 0 is to make up a story to get a price dip so he can make money on his short positions.

jonknee 9y ago
As of last quarter they reported $3.8B of net tangible assets, though the bulk of that is inventory (not worth so much if the company goes away!). Depending on how the next quarterly report looks like it's not hard to imagine negative worth.
- dkhenry 9y ago
  They also reported 11B in revenue and 2B in income, those numbers factor in more then just the balance sheet.
  - jonknee 9y ago
    They lost $2b, on $11b in revenue. That's the problem!
raphaelj 9y ago
In the case of a bankruptcy, the assets will be sold to reimburse employee wages, contractors, suppliers and banks first. Only what's left will go back to the stakeholders.
- dkhenry 9y ago
  Right, but they have 11b in revenue. They claim to be operating today with a 27% margin on the model S, if an investor dropped the model 3 and focused on producing just the S an investor would easily pay more then the 20b they have in outstanding dept to get that revenue. To claim that a company with that much revenue and that much equipment and investment is worth 0 is so far from being rational.
perl4ever 9y ago
Your opinion makes me think of the things people were saying about SunEdison before it went bankrupt, and how many people utterly refused to believe the stock was worth zero afterwards. n.b. I own a very small amount of Tesla stock, and I have no particular opinion of Chanos.