Not for long if their sales continue to tank, because that revenue will be going to other manufacturers, who will become bigger than tesla, eventually.
And I don’t simply want Musk out. He’d still be rich because of Tesla. I want the company to fold completely. I want his fortunes to be zero, and his influence to be less than zero.
Tesla’s stock price has little to do with Tesla going bankrupt. This is about Musk himself. He’s heavily invested in Tesla and as Tesla’s stock goes down his net worth and power goes down.
What it does make difficult for Tesla is to raise money through investment.
Tesla’s problem with all of this is brand damage. Best thing Tesla could do now to recover the brand is remove Musk as CEO. However, as the largest investor he’s almost self-appointed.
Tesla has something like 40b in cash, and makes more profit on their vehicles than everyone, even at these lower prices, except for companies like Porsche.
You could probably halve their total sales and they’d still be fine financially.
It’s less the 40b and more how profitable the vehicles are.
They have a lot of room for reduced sales, they could cut an entire shift and be okay profitability wise. The 40b allows them, If they wanted to still try and grow with the reduced sales. That could last for many years if needed in that case, but if shit hit the fan and they decided to grow less and optimize for further reduced costs the could probably keep the 40b much longer.
Edit: And they sell more than cars to generate more profit. Energy business is growing and less (bit not zero) impact from his craziness as commercial stuff cares less.
OK, so same question as before: how bad do their sales need to be for them to tank? I mean, we’re seeing over 70% drop in some countries. Could they possibly sustain that for six months? A year?
If the general public had a target, I’m sure we’d get there!
They still sold 330,000 cars even with all the drops and model y changeover on a quarter that’s always the weakest in the year.
It would have to get much much much worse to make them not profitable on the cars, and not be able to sustain the difference from their energy business.
Maybe sales under 1 million for the whole year for something like no profit? But maybe not even then?
Edit: in 2017 The model 3 ramp was profitable at 5k a week in Fremont, and the car is cheaper to make today.
I’d like to see the stock devalue to normal levels, taking most of Elon’s wealth with it, the board deciding that Musk is a major detriment to the company and fire him as CEO and then get back to their core business of making cars without the regular injections of Musk insanity.
What numbers would cause them to go bankrupt? I can’t imagine any business surviving such significant losses for very long.
They’ll shrink in size but will always be a big player in the EV market.
The main question is: how big a decline will be required for the board to boot Musk out?
Not for long if their sales continue to tank, because that revenue will be going to other manufacturers, who will become bigger than tesla, eventually.
And I don’t simply want Musk out. He’d still be rich because of Tesla. I want the company to fold completely. I want his fortunes to be zero, and his influence to be less than zero.
If you want that to happen, then you’ll need to start work on SpaceX after Tesla is gone.
One thing at a time 🤭
Tesla’s stock price has little to do with Tesla going bankrupt. This is about Musk himself. He’s heavily invested in Tesla and as Tesla’s stock goes down his net worth and power goes down.
What it does make difficult for Tesla is to raise money through investment.
Tesla’s problem with all of this is brand damage. Best thing Tesla could do now to recover the brand is remove Musk as CEO. However, as the largest investor he’s almost self-appointed.
Tesla has something like 40b in cash, and makes more profit on their vehicles than everyone, even at these lower prices, except for companies like Porsche.
You could probably halve their total sales and they’d still be fine financially.
The stock would be another story though.
40b doesn’t sound like a lot for such a big company, though. That money will burn through quickly, unless they start mass firing their workforce.
There must be a breaking point. No large company can just exist without sales keeping them afloat.
It’s less the 40b and more how profitable the vehicles are.
They have a lot of room for reduced sales, they could cut an entire shift and be okay profitability wise. The 40b allows them, If they wanted to still try and grow with the reduced sales. That could last for many years if needed in that case, but if shit hit the fan and they decided to grow less and optimize for further reduced costs the could probably keep the 40b much longer.
Edit: And they sell more than cars to generate more profit. Energy business is growing and less (bit not zero) impact from his craziness as commercial stuff cares less.
OK, so same question as before: how bad do their sales need to be for them to tank? I mean, we’re seeing over 70% drop in some countries. Could they possibly sustain that for six months? A year?
If the general public had a target, I’m sure we’d get there!
They still sold 330,000 cars even with all the drops and model y changeover on a quarter that’s always the weakest in the year.
It would have to get much much much worse to make them not profitable on the cars, and not be able to sustain the difference from their energy business.
Maybe sales under 1 million for the whole year for something like no profit? But maybe not even then?
Edit: in 2017 The model 3 ramp was profitable at 5k a week in Fremont, and the car is cheaper to make today.
I guess we still have a lot of work to do then 🤭
I’d like to see the stock devalue to normal levels, taking most of Elon’s wealth with it, the board deciding that Musk is a major detriment to the company and fire him as CEO and then get back to their core business of making cars without the regular injections of Musk insanity.