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Tesla is ahead in many regards but they are too debt laden for a buyout at this point. A larger player would be smart to wait until the economy turns and Tesla
by prklmn 7y ago
Tesla is ahead in many regards but they are too debt laden for a buyout at this point. A larger player would be smart to wait until the economy turns and Tesla can no longer meet debt obligations, then buy them out of bankruptcy.
- JumpCrisscross 7y ago> they are too debt laden for a buyout at this point Enterprise value is indifferent to capital structure. A leverage-sensitive buyer would buy out the high-yielding debt in addition to the equity. Purchasing out of bankruptcy is riskier, in many levels, compared with a negotiated sale.
- prklmn 7y agoWhy do you say purchasing out of bankruptcy riskier? That's counter-intuitive for me.
- notaki 7y agoWould be nice for them, probably not gonna happen.