Tesla bankruptcy probability 2017

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Vilas Capital: Tesla Is Going Bankrupt And Is Still A Great Short. April 7, at am by ValueWalk Team. Vilas Capital on Tesla Inc TSLA short below.

“Tesla, without any doubt, is on the verge of bankruptcy,” John Thompson, chief investment officer of Vilas Capital Management, wrote in a note.

But despite Tesla's strong performance in , Thompson's fund still “Tesla, without any doubt, is on the verge of bankruptcy,” he told clients.

What is alarming, is that Tesla decided to go for the later. Is Tesla nearly bankrupt? Still have a question? Model 3 is available to order, and no reservation is required in the U. Tesla depends upon historically fickle Wall Street financing to stay in business.

Tesla Probability Of Bankruptcy | TSLA Nasdaq - Macroaxis

What happened to , reservations? Today, after some delays, the Model 3 is being produced. But something interesting happened recently.

I received an email from Tesla that said: Model 3 is available to order, and no reservation is required in the U. You can design and order yours today for delivery in approximately 2—4 months. On the surface this sounds like great news, except that it begs a question: What happened to , orders?

Thus there are only three possible explanations for the email I received. One is that Model 3 production is expected to accelerate at an exponential rate to 40, cars a week, starting now. Or two, maybe Tesla has been extremely liberal with its statement of a two-to-four month delivery schedule because it still has , cars to produce before it can start fulfilling new orders, and the company is using that email to raise additional funds from new customers making deposits.

There is a third explanation: This brings us to the next question: What Musk has achieved with Tesla and SpaceX is truly astounding. I have incredible respect for him, but he is also a magician playing a confidence game. For that to happen, Tesla needs to maintain its high stock price, and investors have to believe that Musk is the Iron Man.

Investors have to suspend belief, ignore current problems, and focus on the future. However, if the market loses confidence in Tesla and Musk, Tesla is done. This company is losing billions of dollars a year; it has an over-levered balance sheet.

There is no magic. Magic is just the art of misdirection. Musk has been showing us a lot of shiny objects. Some are real, like the success of SpaceX; some are superfluous, like sending a Tesla Roadster into space, and some are future promises on which Musk may or may not be able to deliver, like his futuristic underground railroad for cars the hyperloop and the Tesla truck, which is unlikely to be produced on time and at the promised price. Tesla reportedly recently sent an email to its suppliers asking them to give some money back to help the company with its profitability.

Such requests are made by companies looking for Hail Mary solutions to significant financial problems. Hail Marys are acts of desperation. This brings us to the last question: How effective is Musk at running Tesla? Tesla is Elon Musk. He has achieved more than many of us will achieve in a thousand lifetimes. To make matters worse, he is also an incredible micromanager. I read that he interviews or at least used to every new employee who joins Tesla and SpaceX.

It is clear that Musk is quite exhausted, and his behavior is becoming more erratic. Another red flag went up recently: Musk started to attack short sellers. A short seller who went under the name of Montana Sceptic posted negative research on Tesla on Twitter and SeekingAlpha. Historically, companies that have gone after short sellers have had something to hide or were playing a confidence game.

The short sellers were interfering with the misdirection to shiny objects. I am not long or short the stock. Elon Musk, the flamboyant boss of Tesla and SpaceX, took to Twitter on April Fool's day to joke the electric car-maker, which has been rocked by bad news, was going bankrupt - Elon Musk says Tesla has 'gone bankrupt' in April 1 prank. Tesla really is going to go bankrupt! A business can make a loss but as long as it still has cash it can go on because cash is king, Cash is literally King!

Former General Motors Vice Chair: I Think Tesla Is Doomed