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by prklmn
2536 days ago
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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. |
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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.