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> 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
by 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 agoAnd Tim Cook is waiting for that moment to arrive, so that he can put an apple on every Tesla.