Quote:
Originally Posted by aturnis
...
I'll never understand the "Tesla will die" argument.
...
Mostly though, it's that the private investors who have already committed billions aren't going to let Tesla sink with nearly $25 billion in reservations sitting on the table. Not to mention that Tesla hasn't even begun to leverage all of its assets at this point.
Tesla also has a lower debt to equity ratio than the industry average. Ford on the other hand is nearly double average.
|
Any company can die.
I'm not motivated to research and post but Tesla is burning through cash. It remains to be seen how patient those investors are.
Tesla's competition isn't likely to be Ford. It is more likely to be the German makers who are going to start cranking out upscale electric sedans that compete head on with Tesla's products. They started out behind, but they can spend tens of billions on development without having to take out loans and they have gotten very good at cranking out reliable vehicles on relatively low margins.
I hope Tesla survives and stays independent, but I got real doubts about that. I could see it getting to the point of having to be either entirely sold or partially sold through a strategic investment by another car company in order to stay afloat.
And I could see Musk refusing to see the writing on the wall and driving it into the ground before letting it be sold while it still could be.