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Tesla won't go bankrupt. They have a very valuable brand and a lot of valuable IP. What could happen if they don't make it is that they get bought by another au
by api 7y ago
Tesla won't go bankrupt. They have a very valuable brand and a lot of valuable IP. What could happen if they don't make it is that they get bought by another auto maker or company that wants to enter the space at a price that is much less than what Tesla's shareholders would prefer and the investors take a big haircut.
- CoffeeDregs 7y agoThat doesn't mean they won't go bankrupt... The brand and IP are assets but the liabilities can easily exceed them. Perhaps you mean that Tesla won't disappear...
- vikramkr 7y agoThey have a ton of debt and that's what matters, investors can only legally take a haircut down to 0% and debt must be paid down. Another company buying then would be buying the debt as well. If their cash flows aren't enough to pay down the debt and keep operations going, then they will ha e to file bankruptcy, at quick point those other companies you mentioned might buy Tesla's assets.