Tesla bankruptcy?

It’s straight hideous is what it is

I know, but hideous what? :thinking:

Today’s version of this classic? Btw, it is supposed to be a truck.

image

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Honestly, Azteks are going to be collectors items one day. The time to get one is now while there are old ladies with blue hair that are still the original owner

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Whoops

12 posts were merged into an existing topic: Tesla Truck - Early April Fools joke?

LOL…

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Two other bits today

and not letting the police help investigate/recover $37M in theft at Nevada Gigafactory

#governance

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Maybe I’m wrong, which happens from time to time, but I thought there was some sort of law requiring manufacturers to have parts available for vehicles for at least 10 years past production. Then again, it wouldn’t be the first time Musk said "F the law’

The fact that you’re potentially boned now if you’re in an accident, or you need a new gear shift knob is kinda sad. It kind of brings a new meaning to “Planned obsolescence.”

That’s ok, I guess…just plunk 100 bucks down on that beautiful truck that MAY arrive by 2021.

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In for a penny in for a pound…

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Broke as a joke

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Soo Tesla the company is going bankrupt because Elon’s personal assets are illiquid? Was he financing the company single-handedly with his cash? I am only asking since the thread is titled Tesla bankruptcy.

Who’s making that one?

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Mortgages on 5 of his houses to pay payroll, personally guaranteed by his stock. As 1 data point.

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That doesn’t answer my question though, it only shows he indeed has bunch of illiquid assets. Tesla’s operations are not financed by his personal cash reserves, only his personal assets are used to secure loans. He still owns the properties in question, right? Why would him not having cash in hand personally indicate an impending bankruptcy for Tesla? Do you have any data point showing Tesla is struggling to secure loans or raise money?

I have a feeling that Tesla would become a crowd funded concern before it ever truly gets a chance to go belly up.

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Tesla was so close to bankrupt in the past year, Musk loaned Tesla personal money to pay payroll. The money he loaned them reportedly came from new mortgages he took on his houses.

One (of many) things you look for in an insolvent company is comingled personal and business finances, and inter-company transactions that don’t resolve…

which is why it would go through receivership before anything like this.

Tesla will raise more money on the Cybertruck and more on the Semi it hasn’t delivered, and the Roadster that is late, but that doesn’t unwind the fungible funds. If you take a loan on your house, loan it to your company, have your company paying your mortgage payments, and argue over Tesla not paying every penny of jet time he commutes 30 miles in a G650: where does the person end and the company begin?

One reason they’ve burned through so many corporate counsel and CEOs: the books are a hot mess (but fun reading when you aren’t signing off on them).

The problem is “the market can stay insane longer than you can stay solvent”

Even if logically assuming Tesla should be BK’d, it may happen long after every one tired on saying it should be.

On the other hand if even it BK’s tomorrow just to shed liabilities like GM did in 2008, Tesla can continue build cars just like GM did.

BK of that company doesn’t mean end of Tesla cars manufacturing.

Yes and Fred Smith once bet $5k in Vegas and his blackjack winnings kept Fedex open for one more week delaying bankruptcy. Tesla did go through some really difficult times when they couldn’t ramp production fast enough but that was right before the Q318 ramp here:

Since then they moved almost half a million cars and become the best selling luxury brand in the country, do you think they still depend on Elon’s personal assets to fund operations?

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Apples and oranges. Fred Smith gambled $5,000 of FedEx money, not his own, and should have gone to jail for it (or been forced out). False equivalence.

THE GUY running (part time) a $60B company had over $500M in person loans from banks guaranteed with Tesla stock, that had to be disclosed to investors when raising money (co-mingled). Same guy has personal loans from Tesla, and loans to Tesla. Executives at other public and private companies get deservedly ejected for less.

Tesla has been within two weeks of bankruptcy in the past couple years. We aren’t talking about 2008.

The ramp isn’t the only hump: demand for the S and X (the high margin products) is down, they have to scale/ramp/reconfigure for all of these late/nonexistent products they’re betting on next. Their management team has been gutted, and they have more competition that ever.

I hope they succeed, but reckless management that is personally over-leveraged (the business too) micro-managing from the top (even after admitting what and when that was wrong, like trying to automate 99% of Model3 assembly), over-promising and under delivering isn’t a helping. Also the sales and customer service are such that people would not tolerate it from any other brand, eventually the goodwill evaporates.

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