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This isn't saying that Tesla is worth much, just that GM is worth next to nothing. At this point, it looks like a foregone conclusion that GM shareholders will
by mdasen 17y ago
This isn't saying that Tesla is worth much, just that GM is worth next to nothing. At this point, it looks like a foregone conclusion that GM shareholders will be wiped out in a month or two. GM's obligations seem worth more than its assets and its costs (parts, labor, etc.) are greater than its revenues which makes it unlikely they shall ever meet those obligations in the future.
To be honest, I'm surprised GM is worth a whole billion dollars. All of the plans - from the President's plan to award 50% of the company to the treasury, 40% to the UAW, and 10% to creditors to bankruptcy which would see all common shares voided - would see any stake in common stock worth nothing. Are there people who think GM is going to get a scenario where they are able to pay off their creditors, the UAW, and the government in order to avoid wiping out common shareholders?