ORIONS Money Stocks

[matt24d]

After the first quarter, Tesla is holding about $13 billion in gross debt, $8.4 billion in net debt. How do you pay that off when your car sales are falling off a cliff. The simple answer is you dont. My guess is the vultures will be watching over head. They will have to file for BK down the road and someone buys up their tech on the cheap. The worst part about it is if you own a car can you still get work done under warranty if that happens.

They are probably going to come in about 100K cars less than they projected the next Q. I read the other day prices to insure Tesla's debt are at an all-time high. They are at a point where they can't really lower the prices any more on their cars to try and drum up sales.

Adam jonas commented on another company buying them out and he had this to say. Its actually kind of funny.

"What if Tesla could be purchased by another tech firm, like Apple? Jonas doesn't see that happening either. He doesn't think the firms want to take the risk of buying an automaker whose cars sometimes burst into flames. "Perhaps these big tech firms don't want to expose themselves to that up front ... and they realize the autonomous race is more like a marathon."


Bottom line their debt is their problem and I think they have exhausted the debt market for much more cash unless they truly just give their shares away and a huge discount.