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|User Info||Is Tesla On The Verge of Bankruptcy?; entered at 2017-11-27 23:37:55|
Registered: 2007-07-05 N 47.72/ W 122.55
Just looking at the option chains, and I only gave it a few minutes on YHOO...|
The June 2018 puts at the 200 strike are about $5. The Jan 19s are just under $13.
The Bloomberg article referenced by Darcane has TSLA burning through cash and will go to zero in August of 2018. It all seems to be hanging on the rollout of the Model 3 in March, where they think they can produce 5000 cars per week.
Bloomberg thinks they need to raise about $2 billion, but the debt offerings they had three months ago are under water, which kinda sucks for a flashy company like TSLA.
So, the $200s would seem like a lock, but could be hurt if TSLA can get the revenue needed from the Model 3, or can raise money either by selling debt or equity. The equity would be tough, as once the debt markets tell you to******up a rope, BK is usually right around the corner, since equity will run.
The June 200s will max-out at 40:1, which for the price of a Roadster deposit, is $10 million, provided it goes to zero. It will take longer than 1.9 seconds, but not much longer.
Anyone remember Bear Stearns in March of 2008?
Anyone remember Juniper Networks back in the go-go days of the first stock bubble? YHOO is showing a drop from 218 to 14 in the span of a year. I seem to remember 244 to sub-5 in that span. Either way, a breathtaking drop, and that is for a company that is still in bidnizz some 16 years later. JNPR held on longer than most in the tech build-out (about 6-8 months), but still had it's day of reckoning.