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by prklmn 2536 days ago
Tesla is ahead in many regards but they are too debt laden for a buyout at this point. A larger player would be smart to wait until the economy turns and Tesla can no longer meet debt obligations, then buy them out of bankruptcy.
2 comments

> they are too debt laden for a buyout at this point

Enterprise value is indifferent to capital structure. A leverage-sensitive buyer would buy out the high-yielding debt in addition to the equity. Purchasing out of bankruptcy is riskier, in many levels, compared with a negotiated sale.

Why do you say purchasing out of bankruptcy riskier? That's counter-intuitive for me.
Would be nice for them, probably not gonna happen.