Re:Stock Market: What Happens If Tesla Enters S&P 500
by take_a_breath on Tuesday August 04, 2020 @12:15PM
(#24051406)
They can easily raise debt, but it will still be a liability on their balance sheet and they will have to pay it back.
What if the stock price falls by the time they have to re-pay the loan? What if free cash flow dries up (as most of it comes from selling credits, not cars)?
You’re assumptions paper over the risks/liability of debt while also assuming the stock price stays at today’s level (or keeps rising).
What if the stock price falls by the time they have to re-pay the loan? What if free cash flow dries up (as most of it comes from selling credits, not cars)?
You’re assumptions paper over the risks/liability of debt while also assuming the stock price stays at today’s level (or keeps rising).