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Wow, what is he bringing to the table?
by peteradio 8y ago
Wow, what is he bringing to the table?
- erikpukinskis 8y agoRight now Tesla is really the only company selling even close to volume. No one else is even trying to hit the 500k to 1m volumes Tesla is aiming for. Over the next decade several others will join them. Ellison is a butt, but he understands fierce competition very well. As other automakers start gunning for Tesla hos advice will be an asset.
- Avshalom 8y agoHopefully about $30-50 per share in "market confidence" in the midst of a bear market. Otherwise Tesla probably goes bankrupt in March.
- peteradio 8y agoI suppose short term gains is the only way the market knows how to function.
- hguant 8y agoQuarter to quarter mentality is the biggest downside to becoming a publicly traded company. 'Maximizing shareholder value' has a nasty habit of crowding out all other concerns.
- jp555 8y agoEven if they did, it doesn’t mean they’re going away. GM went bankrupt in 2009, still here.
- giarc 8y agoGM was propped up by multiple levels of government investment, not sure that would come for Tesla.
- cbm-vic-20 8y agoTechnically, GM went out of business back in 2011. What is now known as GM today was a company formed in 2009, which then purchased the assets, brand, etc. from the "old GM" that went through Chapter 11 bankruptcy. See: https://en.wikipedia.org/wiki/Motors_Liquidation_Company https://en.wikipedia.org/wiki/Motors_Liquidation_Company
- Traster 8y agoThe assets would definitely survive in some form, but would anyone think that Tesla brand owned by Ford is really Tesla? I don't think so. Almost certainly a default would result in a purchase from one of the traditional car manufacturers that wants to destroy a potential rival, scoop up battery IP and get a hard start on automation. Ford even have the cash on hand to refinance the debt.
- barney54 8y agoWhat is the Tesla battery IP that matters? They don’t make the batteries, Panasonic does. https://www.google.com/amp/s/electrek.co/2018/07/31/tesla-gigafactory-panasonic-battery-cell-production-model-3/amp/ https://www.google.com/amp/s/electrek.co/2018/07/31/tesla-gi... What Ford or one of the other large automakers bring to the table is a track record of mass producing cars. That’s not something Tesla has done yet.
- nerddoctor 8y agoWhy would an increase in stock value stop a company from going bankrupt?
- jpalomaki 8y agoMaybe due to arrangements like this: "On or after Dec. 1, 2018, to the debt’s maturity date, the holders can decide to convert the debt into Tesla shares. If Tesla’s stock is above the $359.87 stock price, the holders will likely convert the debt into equity, relieving the company from using $920 million in cash required when the debt comes due in March." https://www.cnbc.com/2018/08/08/elon-musks-tesla-stock-boost-may-lower-financial-pressures-for-the-ca.html https://www.cnbc.com/2018/08/08/elon-musks-tesla-stock-boost...
- Avshalom 8y agoTesla issued a bunch of bonds that come due in March. If the stock price is above ~350 then they can pay off the bonds in by converting them to stock. If it's lower than that they pay them off in cash. https://www.businessinsider.com/tesla-to-pay-march-convertible-debt-cash-stock-report-2018-12 https://www.businessinsider.com/tesla-to-pay-march-convertib...
- deleted 8y ago[deleted]
- illumin8 8y agoTesla just reached profitability last quarter, and is likely to turn a profit this quarter as well. They might not even need to raise more capital if they keep up with Model 3 demand coming from the US, Europe, and China next year. This is a far cry from bankrupt in March.