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Barely profitable, staring down growing competition from industry veterans and built around Musk's cult of personality. I love Telsa and what their doing but i
by swarnie_ 8y ago
Barely profitable, staring down growing competition from industry veterans and built around Musk's cult of personality.
I love Telsa and what their doing but investing/acquiring them is such a risky move imo.
- TheSpiceIsLife 8y agoIf Telsa goes belly up, is it possible creditors will want to sell the business as a going concern? One of the other vehicle manufacturers make be able to buy Telsa's manufacturing facilities and branding for cents in the dollar.
- JumpCrisscross 8y ago> If Telsa goes belly up, is it possible creditors will want to sell the business as a going concern? If it goes belly up, it’s no longer a going concern. Moreover, liquidation value of manufacturing facilities is pennies on the dollar. (Before legal fees, creditors’ claims, et cetera.) Supply chains are too tightly integrated; it’s expensive to swap in someone else’s kit.
- TheSpiceIsLife 8y agoThanks for you response. I do apologies for my lack of understanding with regard to the correct use of financial terms. I guess what I meant was, is there a future were, say, the Volkswagen Group owns Telsa?
- dragontamer 8y agoOf course. Patents and other IP will be sold off to the highest bidder. The factories will be closed down, but there's still railroads and other infrastructure that have been built to support the site. A new company will inevitably purchase the old site and recycle the infrastructure.
- dsfyu404ed 8y agoThat said, time spend waiting for Tesla specific parts would drop like a rock because all that tooling generally gets sold to some aftermarket company that ships it co China/Mexico/wherever and starts using it to crank out parts. Of course that won't matter if the server your car phones home to before turning on is down.
- TheSpiceIsLife 8y agoIs there any technical reason the IP addresses of those servers couldn’t also be sold? Could some court or another order the whole server-side kit be sold? IP addresses, encryption keys, protocols, API, etc.
- tivert 8y ago> Could some court or another order the whole server-side kit be sold? IP addresses, encryption keys, protocols, API, etc. That's actually scarier. Whoever buys them would likely want to monetize the purchase, which likely means pushing out one final software update to put autoplay ads on every Tesla's dashboard and collect maximum tracking information to sell.
- TheSpiceIsLife 8y ago*Only in America. In a perfect world some other auto manufacturer or parts supplier with a reputation to maintain, or benevolent society, would acquire it with the intention of making the vehicles maintainable.