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Lucky they have cheap equity capital because their debt is junk status. And some of the self-fulfilling prophecy is the cycle of good old WS analysts overrating
by guiriduro 5y ago
Lucky they have cheap equity capital because their debt is junk status. And some of the self-fulfilling prophecy is the cycle of good old WS analysts overrating an asset, Tesla, and their simple endorsement creates an inflationary cycle that generates a huge bubble and more me-too analysts - where have we heard that before? And we know how those end up despite all the transient commentaries that 'its different this time'. I doubt the Fed will be eager to bail TSLA investors out the way they did the banks in 2009 though.
- panick21_ 5y agoTheir rating just got upgraded. Tesla as a company has basically retired all debt, they have 16 billion in cash and no debt. Their position is far better then other car companies. > I doubt the Fed will be eager to bail TSLA investors out the way they did the banks in 2009 though. Even if the Tesla stock dropped by 90%, Tesla would be perfectly fine. They do not really on raising money anymore. They create large amounts of free cashflow and enough profit to finance considerable future investment.