Replies to post #420337 on ORIONS Money Stocks

[matt24d]

LOL!!! I have been saying for awhile now TSLA was garbage and I still stick to it. I am not saying the tech does not have a place at all. Just saying the company is trash. The stock has been way over valued for a very long time. Their sales are falling off. Their cars are starting to see consumers complain about them. Their debt load is huge. They can't ever seem to hit their numbers they guide to. They tell the street they have enough cash and turn around and go for even more financing over and over again. I have said that their debt load is going to crush them and now today the longest bull for the company Adam Jonas comes out and says their debt load is going to be their down fall. Seen many companies Debt load crush them. Just ask Washington mutual, Enron, nortel, etc. unmanaged debt loads will always take a company out. TSLA not only has the debt load but their sales are falling off. Their expenses were starting to rise. Its just an ugly picture.

I think the worst part about the whole thing is I have been calling this for well over a year or more. Why is it the street is just now starting to question them. Most were still saying buy and slapping $300-400 price targets. Just a joke!

[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.