Tesla to cut full time workforce by roughly 7%

wifehunter

Master Don Juan
Joined
Dec 6, 2015
Messages
4,703
Reaction score
2,721
Age
45
Location
Hoe County, California
 

synergy1

Master Don Juan
Joined
Sep 22, 2006
Messages
1,980
Reaction score
168
Location
New England
big debt payment due on friday - roughly 1 billion dollars. Now had the price stayed above a certain point for period of time, the company could have elected to pay off their loan in 50% stock, 50% cash. It is now very certain that they will pay only in cash. This is going to put a strain on their cash reserves as it is thought that their cash balance (less revolving loans they take out to pad the balance sheet), and they have deferred paying a small 180 million dollar loan several times to April. you'd think looking at their balance sheet that they have funds, but a different angle is to look at interest accrued on the income statement in FY2018, which was quite small for a balance of "3.7 Billion" , give or take. Some estimates are cash balances of < 1.5 billion.

There is also talk about slower than expected sales in their next two major markets, the EU and China. This poses a risk to the model 3 growth story, as the model 3 was suppose to sell in higher numbers than models S and X.

You have major efforts to control costs via - already 2 job cuts of around 7% as this thread hit on, and several price cuts. Last time I checked, growing companies don't cut jobs 2 times in a year.

Executives are leaving in doves, including their CFO after the 4th quarter, and their general council who was on the job for less than a month. There is a huge list of other high level executives who have left the company over the past year.

If you own this stock, Id recommend selling. It is tradable, but there are so many red flags with this name, it makes it very risky to own. Lets not forget that the market is at the end of a 10 year bull cycle, and while the recent rally has been nothing short of impressive ( I am short this rally and definitely feeling the pain), bear market bounces happen in all bear markets. If this China deal doesn't clock in at expectations, and earnings continue to slow, I think the market is ripe for another correction. watch out!
 

synergy1

Master Don Juan
Joined
Sep 22, 2006
Messages
1,980
Reaction score
168
Location
New England
If you own this stock, Id recommend selling. It is tradable, but there are so many red flags with this name, it makes it very risky to own.
The horizontal line matches up with feb 25 of this year when I posted above. I have been shorting/ covering this name and making money. That said if someone owned this stock on 2/25 and sold on my reccomendation, they would not be in the hole 35%+.

The stock is terminal now. It will bounce. I expect an undercut of 180 lows, and a rally I plan to get aggressive with shorting the common into this rally, as well as some out of the money puts for good measure. I don't expect the company to last into q3 without another capital raise, and the converts they JUST issued are already underwater so the next raise will be even more deleterious than the last.

The fun has just begun!

Screen Shot 2019-05-22 at 4.24.25 PM.png
 

Xenom0rph

Senior Don Juan
Joined
Mar 12, 2017
Messages
211
Reaction score
222
Location
Los Angeles
Some of y'all dissing the wife got to remember that looks arent everything. For all we know she could be the best s3x a man could ever have. I've had 10's that were horrible in bed - uses their hands during a bj and only taking the tip into their mouth, only want one position, wont put out unless you jump through hoops, no licking b@lls, etc.....

And I've had plain janes (some might call "ugly") that rocked my world.... I would take a less-than-average girl who gives good s3x over a 10 any day.
 
Top