Re:Hertz orders 100k Teslas
by guiriduro on Tuesday October 26, 2021 @04:03AM
(#28997619)
Lucky they have cheap equity capital because their debt is junk status. And some of the self-fulfilling prophecy is the cycle of good old WS analysts overrating an asset, Tesla, and their simple endorsement creates an inflationary cycle that generates a huge bubble and more me-too analysts - where have we heard that before? And we know how those end up despite all the transient commentaries that 'its different this time'. I doubt the Fed will be eager to bail TSLA investors out the way they did the banks in 2009 though.
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Their rating just got upgraded.
Tesla as a company has basically retired all debt, they have 16 billion in cash and no debt. Their position is far better then other car companies.
> I doubt the Fed will be eager to bail TSLA investors out the way they did the banks in 2009 though.
Even if the Tesla stock dropped by 90%, Tesla would be perfectly fine. They do not really on raising money anymore. They create large amounts of free cashflow and enough profit to finance considerable future investment.