“Shoulder to shoulder and backs to the wall” that may be an apt description of Tesla at the moment.
This is a company that has been selling a concept, but has never made a nickel. Nor has it ever met a production deadline or release date.
The $8 billion lost to date has all been debt financed. Could you imagine a small business that could completely finance years of debt?
I have a client who has a current contract with Tesla and they listened and required at least a 50% upfront payment before work started on the project was started.
According to the WSJ, Tesla has people jumping ship at an abnormally high rate that has claimed at least 50 vice presidents or higher-ranking executives over the past 24 months.
All things considered, I still struggle to understand the math that shows Tesla having a share value over $300 per share. How is that possible beyond magic and pixie dust? I expect that if the Model 3 misses a major production deadline the house of cards may come tumbling down.
This may be an opportunity to short Tesla and make some money in the options market.