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Hopefully about $30-50 per share in "market confidence" in the midst of a bear market. Otherwise Tesla probably goes bankrupt in March.
by Avshalom 8y ago
Hopefully 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...
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- 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.