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They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. However everybody agrees that they both have many

by nickik 8y ago

They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. However everybody agrees that they both have many costumers waiting and would be able to raise capital. Nobody believes that Tesla is in real real serious troupe.

jonknee 8y ago
Spending tons more than you make and not having savings is traditionally called financial trouble. Even after a recent huge rally their most recently issued bonds are yielding 7% which means lots of real people think they are a risk. Lots of customers is good, but the more cars they have made the more money they have lost. Negative operating leverage is really bad for any company, but especially one as cash intensive as manufacturing vehicles. I'm rooting for them, but Tesla is indeed in serious financial trouble. Just ask Elon who fired 3,500 people so he could make the books look nicer.
JumpCrisscross 8y ago
> They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. I agree, they are not in financial trouble. Being dependent on a near-term capital raise, however, is financially perilous. Lots of companies were waiting for the fall fundraising season when Lehman went bankrupt.
- hndamien 8y ago
  Elon said in the last meeting that this is not required.
  - jonknee 8y ago
    Elon has said many things that weren't true and the balance sheet doesn't lie. Tesla is going to need to raise capital.
    - hndamien 8y ago
      Mostly timeline related, not sure if he has lied/misled about financials.
Analemma_ 8y ago
> They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. Take a few minutes and read https://priceonomics.com/porsche-the-hedge-fund-that-also-made-cars/ https://priceonomics.com/porsche-the-hedge-fund-that-also-ma.... The moral of that story was, if you're "fine as long as you can raise capital", then you're actually in a very precarious position. And it was even another luxury car company to boot! Not that Tesla is making the same speculative financial shenanigans that Porsche was, but the point is, access to capital has a tendency to dry up right when you need it most. If there's a recession in the next 18-24 months (which, glancing at yield curves, is looking increasingly likely) and lending tightens up, Tesla might not find it as easy as you think to raise capital right when they need it to avoid running out of money.
- ttul 8y ago
  And Tim Cook is waiting for that moment to arrive, so that he can put an apple on every Tesla.

by nickik 8y ago

jonknee 8y ago

Spending tons more than you make and not having savings is traditionally called financial trouble. Even after a recent huge rally their most recently issued bonds are yielding 7% which means lots of real people think they are a risk. Lots of customers is good, but the more cars they have made the more money they have lost. Negative operating leverage is really bad for any company, but especially one as cash intensive as manufacturing vehicles. I'm rooting for them, but Tesla is indeed in serious financial trouble. Just ask Elon who fired 3,500 people so he could make the books look nicer.

JumpCrisscross 8y ago

> They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. I agree, they are not in financial trouble. Being dependent on a near-term capital raise, however, is financially perilous. Lots of companies were waiting for the fall fundraising season when Lehman went bankrupt.

hndamien 8y ago
Elon said in the last meeting that this is not required.
- jonknee 8y ago
  Elon has said many things that weren't true and the balance sheet doesn't lie. Tesla is going to need to raise capital.
  - hndamien 8y ago
    Mostly timeline related, not sure if he has lied/misled about financials.

Analemma_ 8y ago

> They are not in financial trouble. Most people are only skeptical if they can do it without raising capital. Take a few minutes and read https://priceonomics.com/porsche-the-hedge-fund-that-also-made-cars/ https://priceonomics.com/porsche-the-hedge-fund-that-also-ma.... The moral of that story was, if you're "fine as long as you can raise capital", then you're actually in a very precarious position. And it was even another luxury car company to boot! Not that Tesla is making the same speculative financial shenanigans that Porsche was, but the point is, access to capital has a tendency to dry up right when you need it most. If there's a recession in the next 18-24 months (which, glancing at yield curves, is looking increasingly likely) and lending tightens up, Tesla might not find it as easy as you think to raise capital right when they need it to avoid running out of money.

ttul 8y ago
And Tim Cook is waiting for that moment to arrive, so that he can put an apple on every Tesla.