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by saas_co_de 2994 days ago
It really reeks of desperation. They are frantically doing anything they can to keep investor confidence but all of their tricks are so worn out and tired now and their debt load and burn rate is so much higher that it isn't going to change anything.

They will go bankrupt. 100%. Maybe they can arrange some buy out or merger to try and save face, but doubtful.

Given their level of candor I am sure their accounting is an Enron style sh-t-show of epic proportions.

That is almost certainly why they had to buy SolarCity. Other than paying off Musk and SpaceX loans they also couldn't afford to have the books opened in bankruptcy court because it would destroy Musk's reputation.

It is coming though.

2 comments

I have been hearing this bankruptcy coming for the last 7 years. Yet, Tesla keeps delivering. I remember when the Model X production started, people had already written the obituary because of quality issues. The key thing to note is that Tesla's demand far outstrips supply and Tesla's customer satisfaction rate is over 90%. They can raise any amount of liquidity with those numbers.
> They can raise any amount of liquidity with those numbers.

7.5% bond yield says no.

> I have been hearing this bankruptcy coming for the last 7 years

Yes, the anticipation makes it even sweeter. :)

But seriously, they have been loosing money non-stop and at progressively higher rates for those entire 7 years, so what do you think is going to happen?

If you're 100% sure, then you should dump your life savings into shorting Tesla. You'll make a fortune.