

Tesla shares tank; here’s one more reason why - newbie12
http://blogs.marketwatch.com/thetell/2012/09/25/tesla-motors-puts-off-u-s-loan-payment/

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dclinton
MarketWatch are a complete rag of a financial news site. As in this case, most
of their headlines are sensationalist link-bait. I guess that makes me a fool
for even reading the article.

Look at the chart and it's clear that Tesla's stock price has not 'tanked';
it's trading well within the range it's been in for some time. They are not
"defaulting" on their loan, they are re-negotiating it.

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someperson
Renegotiating terms of loan!=defaulting

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mcphilip
I flagged this submission for its incorrect and misleading title, but Tesla
does basically say they will default if terms are not renegotiated and/or
their follow on stock sale doesn't raise enough money.

FTA:

Based on our current financial forecast, we currently anticipate that if we do
not raise the proceeds from this (stock) offering and do not otherwise adjust
our operations accordingly to amend the DOE Loan Facility, we may not be
compliant with the current ratio covenant for the quarter period ending March
31, 2013

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mariusz79
Here is the problem with Tesla, SpaceX and other Musk's companies - they
depend on government loans, tax incentives and subsidies. They need them to
exist, and without them none of the companies would have a slightest chance of
success. As soon as the subsidies, tax incentives or loans stop - so does
Musk's empire.

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bryanlarsen
Here is the problem with GM, Chrysler and other companies. They depend on
government loans, tax incentives and subsidies. They need them to exist, and
without them none of the companies would have a slightest chance of success.

Besides the direct bail-out Obama gave GM & Chrysler when they were about to
go under, the conventional car companies depend on a huge government subsidy
called externalities. Cars depend on a vast road system whose cost is mostly
paid for via income and property taxes. Conventional cars also impose huge
external costs via pollution and car insurance.

If the implicit subsidies to oil-burners were to stop at the same time as the
subsidies to Tesla, Tesla would be partying in the streets.

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mariusz79
Just because it seems that everyone can now get government subsidies it does
not make it right.

It's like saying - Eat sh*t. Billions of flies can't be wrong.

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bryanlarsen
Either cut everybody off or cut nobody off. Philosophically I'd rather the
former, but practically I prefer the latter. The riots we'd get with
$20/gallon gasoline are pretty off-putting.

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mariusz79
Or maybe $20/gallon gasoline would make solar make more sense? Maybe then we
would need to find a way to make more efficient cars?

Subsidies don't help anyone - except people getting them.

