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Also, if there should be any trouble at all getting a dirt cheap bailout loan from the government, a solid history of holding the party line will be a guarantee
by marvin 7y ago
Also, if there should be any trouble at all getting a dirt cheap bailout loan from the government, a solid history of holding the party line will be a guarantee for success. I don't know if Musk deliberately plays this strategy, but it would certainly be on my mind if I were in his shoes. I'm not at all shameless enough to do that kind of thing, thankfully.
If Tesla's able to survive through the current macroeconomic slowdown, this situation plays strongly to their advantage. They'll keep being capital constrained for another decade or so. Their ambition is to build 20 million cars per year. Need ten more factories to do that.
Zero interest bailout loans would be a godsend, as long as they can stay profitable and still have a healthy customer base. They're a growth company still. Nowhere near the ceiling of their potential market.
Although it's still a super uncertain and scary situation, it's much better place to be than being an established, no-growth automaker with thin margins falling to zero on a 10% sales decline.