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If Tesla runs out of money, does it just mean they will be acquired by another car company, or something else?
by warent 8y ago
If Tesla runs out of money, does it just mean they will be acquired by another car company, or something else?
- golfer 8y agoI think it's unlikely they'll be acquired. Tesla has about $9B in debt, had never been profitable on an annual basis, and most other automakers are plowing forward with their own EVs. I don't see much upside in acquiring Tesla. I expect chapter 7 bankruptcy (liquidation), or chapter 11 if Elon can pull the ripcord soon to have some money available to weather the restructuring.
- jacques_chester 8y agoThere's a lot of P&E on the balance sheet. If they liquidate I expect the creditors will look to flog that to the major carmakers.
- iamgopal 8y agoWhatsApp was sold for 20 billions and redhat for 32 billions. I think apple could easily buy it when time comes.