We are getting way off track here... I believe my point for the post was to point out that in the face of OBVIOUS trouble..... bad press, robot car failure, losing almost $3 Billion per year... that investors still buy up this crap with no regard. Look back no further than the dotcoms that failed and stocks went to $0. Eventually, maybe , rational thought enters the equation. I would bet that over 50% of share holders of TSLA do not even know how badly they are losing money. last quarter was -$717,000,000 ... that is losing $8,000,000 per DAY!
It's actually not a problem for a huge percentage of drivers given how they drive. If you commute 50 miles each way for example, which is more than most of the population, you've used less than half the range of your Model 3 on a round trip. And indeed I had a point, given most cars spend most of their time parked at least overnight when they can charge, charging is a non-issue. If you have a second car, which again most families do, you can use that the few times you are planning to exceed the 220 mile range. In the last 30 years I've been driving, exactly zero times I've unexpectedly had to leave direct from work on a 100 mile plus each way trip! It's not for everyone, if you routinely or unexpectedly clock over 200 miles a day you want something else. But the "problem" of range you cite just doesn't hold up to some common sense scrutiny of how most of us drive. I don't have a Tesla but have talked to several who do, you might try that?
Well 50% of the shares are held by Elon, two large mutual funds, and the Saudi sovereign wealth fund, so I'd guess at least 50% are fully aware of Tesla's finances!
I can see that Trump might try to veto this. Selling out an American company to the Chinese, doesn't sit well with the Donald. Except the shorts, it is a win-win for all. The longs cash out with huge profits, the company doesn't go just yet bankrupt and the eventual loss will be all private, institutional and even mostly foreign. Oh yes, and about 30K+ American jobs last a few years longer. What is there not to like?
Agree, if he takes the company private, how will it raise more cash? I don't see what Tesla has that Audi / BMW / Porsche and others cannot replicate. Anyone can make a car by throwing a DC motor or two plus a bunch of laptop lithium ion batteries into it. Challenge is doing it profitably. "While Toyota is the only company to make a profitfrom hybrid car sales, no one makes money from all-electric car sales. ... And even Toyota would lose money on its most “electrified” car, the Prius Prime plug-in hybrid, without subsidies. The reason is battery costs, which remain prohibitively high." https://www.wardsauto.com/engines/groundbreaking-prius-hybrid-evolves-over-20-years
New HELLO!!! exactly... who the hell wants to purchase a business that is loosing BILLIONS $$$ per year.
Good point, the debt portion of that LBO would be serious junk territory. Which would just up the chance of eventual bankruptcy as we see frequently in LBOs after the PE team has drained everything out of them.
The Tesla bonds inexplicably traded at sub 3percent (and the collateral didn’t even include the battery factory) but I don’t think the mezzanine markets will be as forgiving. Further trumps tax policy has severely impacted the PE industry as they can’t deduct all the interest expense. So some PE deals are now negative earnings. This is why dell is looking to go public.