martini964:
Whoopsy:

Nothing really new though.

Everyone and their mother knows Tesla needed some major cash infusion some time this year to survive, possibly the around the first half of the year, which we are almost there.

But the major drop in stock prices today might trigger some debt call backs though and pinch their liquidity even further, THAT might cause a run on the stock price especially the psychological support of $300 is gone like it's nothing, if more bad news pile on, don't be surprise to see Tesla at around $200, or even worse.

Im not a bright guy when it comes to finance, but what if china put some bands while Trump did the same,would this affest Tesla?

 

Did you meant to type bans?

Banning auto-pilot cars would be bad news for Tesla, heck just making it more regulated will affect them, it was their one major selling point.

2hrs into today's session and Tesla lost another $20+ and now at the $250 range. 

Tesla needed one thing and one thing only, money. There is only 2 ways for it to get that, either borrowing or turned existing deposit into orders.

First part they are almost tapped out, their credit line is almost maxed and the 2nd part they are way behind on production target to covert the Model 3 deposits into cars.

They have no choice now but to go to the market and issue more debt, but that also hinges on them maintaining a high stock price.

It's a catch-22 right now for them.They badly need some good news to prop up the stock price but the bad news wouldn't stop.

 

 


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