dodger02 said:
Flashdiaz said:
even at it's worst, they won't close their doors, a bigger company will buy them.
I hope they succeed and push other brands to innovate faster.
Exactly
My concern is that Tesla is another Enron. There's a viable underlying business, but the financials don't back up the hype, or at least it's a possibility. They're about to put a 34 year old CFO at the helm that's been there 10 years. In other words, his real world financial experience is nil outside of Tesla.
Debt load and purchase obligations, combined with no positive cash flow, is a huge red flag. Any shake-up in the economy threatens their ability to sell their cars.
They either need to turn profitable in the coming 12-24 months or they need to demonstrate they can get moving in that direction. Otherwise, you have to hope that the remainder of the board is independent enough to recognize an opportunity if a buyer comes along. Meanwhile, while racking up debt, the prospects of a viable buyer appear shaky.
I want competition to result from their disruption to the market, but if they can't survive long enough for a takeover, there may not be enough left of the scrap heap for anyone to pick up and carry forward.