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re: Tesla is just months from a total collapse, says hedge-fund manager

Posted on 3/27/18 at 3:39 pm to
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12820 posts
Posted on 3/27/18 at 3:39 pm to
thanks for that update.. I did not see that but just base on technicals.. it broke down today.. the reason for my put spread
Posted by lsu xman
Member since Oct 2006
16714 posts
Posted on 3/27/18 at 4:40 pm to
Tesla would just keep on borrowing money. Plenty of companies lose billions every year and is still around.
Posted by LSURussian
Member since Feb 2005
133679 posts
Posted on 3/28/18 at 8:45 am to
Tesla taking it on the chin again today, down $15/share, or about 5%.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12820 posts
Posted on 3/28/18 at 9:03 am to
out of my puts.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 3/28/18 at 9:07 am to
Did you see their debt was downgraded this morning?
Posted by LSURussian
Member since Feb 2005
133679 posts
Posted on 3/28/18 at 11:22 am to
quote:

Did you see their debt was downgraded this morning?
Moody's downgraded their rating yesterday and it was reported by the media this morning.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
136295 posts
Posted on 3/28/18 at 11:33 am to
I really have never understood why there isn't an uproar over them getting tax dollars.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 3/28/18 at 11:41 am to
quote:

Tesla would just keep on borrowing money. Plenty of companies lose billions every year and is still around.


Sure they'll keep borrowing until they're drowning in interest payments. They simply cannot raise enough cash to fund operations without diluting equity shareholders. The bond markets are going to price them out of that option, and raising equity with a falling share price brings a lot of pain. This coupled with the fact that they lose money on every car produced, and the assets they secure their loans with are refundable deposits It will take much longer than a year for chapter 11 because their financial situation has been deteriorating for years, but they are operationally insolvent.
Posted by trillhog
Elite Membership
Member since Jul 2011
19407 posts
Posted on 3/29/18 at 9:17 am to
$25 million under management??? This guy is a joke!
Posted by Drive4show
Member since Aug 2009
446 posts
Posted on 3/29/18 at 9:24 am to
quote:

$25 million under management??? This guy is a joke!


Agreed - most of the OT has this much under management.
Posted by FredsGotSlacks
Baton Rouge
Member since Mar 2008
865 posts
Posted on 3/29/18 at 1:42 pm to
quote:

yeah model 3 has sucked.

For a 50 k car (the only model offered right now) it has way too many issues. If I dropped 50 K on a car you’d expect extreme quality and top notch service, instead people are returning their cars to the service centers within days/weeks for repairs and when some people go to pickup the car they’ve been told is ready it’s not even there. Tesla is in a free fall right now and as a fan of the company and someone that’s on the waitlist for a model 3 it’s disappointing to watch unfold. People want the product promised and in typical Elon fashion we don’t know if/when that will happen.
Posted by LSURussian
Member since Feb 2005
133679 posts
Posted on 3/29/18 at 1:59 pm to
quote:

and someone that’s on the waitlist for a model 3 it’s disappointing to watch unfold
Jim Cramer said a couple of days ago he canceled his wait listed order for a Mod 3 and requested to get his deposit back.
Posted by Roberteaux
mandeville
Member since Sep 2009
6211 posts
Posted on 3/29/18 at 3:25 pm to
quote:

If I dropped 50 K on a car you’d expect extreme quality and top notch service, instead people are returning their cars to the service centers within days/weeks for repairs


I don't really know all too much about Teslas, but I just assumed reliability/mechanical quality was pretty good considering the steep price. I did stop in a small Tesla showroom once in the Houston galleria. I snooped around in one of the cars they had on display and was pretty disappointed in the interior quality...it seemed so flimsy and cheep and lacking in the quality of the materials!
Posted by FredsGotSlacks
Baton Rouge
Member since Mar 2008
865 posts
Posted on 3/29/18 at 9:12 pm to
quote:

I don't really know all too much about Teslas, but I just assumed reliability/mechanical quality was pretty good considering the steep price. I did stop in a small Tesla showroom once in the Houston galleria. I snooped around in one of the cars they had on display and was pretty disappointed in the interior quality...it seemed so flimsy and cheep and lacking in the quality of the materials!

Tesla has earned a reputation of having small quality issues; panel gap issues, misaligned windows/windshield, creaky seats, noise issues, and on rare occasions battery/motor issues. Look online and you’ll see a Tesla pick-up checklist, it’s basically a punch-list community developed that identified general defects to inspect before you roll off the lot. That should tell you a lot about their build quality.

Even with all that said go and test-drive the car if you never have before, its a different driving experience and you’ll understand why so many people want the damn car if they can ever get it.
Posted by GREENHEAD22
Member since Nov 2009
20582 posts
Posted on 3/29/18 at 9:21 pm to
I have been saying for over a yr that if I had the extra money to risk I would short the hell out of Tesla.
Posted by leoj
Member since Nov 2010
3107 posts
Posted on 3/29/18 at 11:19 pm to
Aaaand now they just had to issue a recall. When it rains it pours
Posted by Capt ST
High Plains
Member since Aug 2011
13501 posts
Posted on 3/30/18 at 4:37 am to
quote:

If I dropped 50 K on a car you’d expect extreme quality and top notch service, instead people are returning their cars to the service centers within days/weeks for repairs


Sounds like they're building a Ford that runs on batteries.
Posted by S1C EM
Athens, GA
Member since Nov 2007
11594 posts
Posted on 3/30/18 at 5:04 am to
quote:

Sounds like they're building a Ford that runs on batteries.


Or, you know, a GM. Or a Mercedes.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 3/30/18 at 7:10 am to
They are fricked even if it's just what they say the recall is for, a rusted bolt. They don't have the capacity to service that many cars on top of their BAU volume.

Also read that they are having production employees to stop producing S and X to meet a quarterly run rate. It appears their story is finally starting to crumble. I've been waiting for two years now and is why short selling is hard lol
Posted by plaric
Pike Road, Alabama
Member since Jun 2011
2269 posts
Posted on 3/30/18 at 7:35 am to
Article said they were ahead on other vehicles so they were shifting resources. Which to me makes sense. I don’t know the whole story though.

Wish I did, I’m fascinated with the company but they seriously need to start making money soon.
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