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> Maybe they don't need money, and Musk is just taking advantage of undervaluation to make a great deal. But it's certainly not crazy to think that they do need
by dnomad 8y ago
> Maybe they don't need money, and Musk is just taking advantage of undervaluation to make a great deal. But it's certainly not crazy to think that they do need money, and if so, taking the company private may be the only viable option.
This doesn't make any sense. Companies don't go private because they need money unless it's a private buy-out. There is no indication at all that TSLA would have any trouble accessing the debt markets. In fact what we see is TSLA turning away investors like the Saudis who are eager to increase their exposure to the firm. If TSLA was so desperate for money why would they be turning away some of the biggest investors in the world?
- anthonybsd 8y ago> There is no indication at all that TSLA would have any trouble accessing the debt markets. Actually there are a lot of indications that junk bond markets have little appetite for Tesla offerings: https://www.bloomberg.com/news/articles/2018-03-28/tesla-bonds-down-to-86-cents-start-to-flash-warning-signals https://www.bloomberg.com/news/articles/2018-03-28/tesla-bon... https://www.thestreet.com/investing/tesla-junk-bonds-sending-powerful-market-signal-14643694 https://www.thestreet.com/investing/tesla-junk-bonds-sending...