
Jim Chanos: We think Tesla is worth zero - SirLJ
https://www.cnbc.com/2017/12/14/jim-chanos-we-think-tesla-is-worth-zero.html
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WheelsAtLarge
Yes, it's worth zero but all startups are worth zero until they make it to the
profit stage. As long as Tesla can get financing and moves forward it's too
early to count it out. Investors are still convinced that it will eventually
make it to the profit stage.

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mikestew
To answer my own question of “why was this posted?”, I’m going to assume so
that we can mock and ridicule Mr. Chanos. I mean, zero? Even he knows that’s
not true. Though he might have a reasonable explanation for why he thinks TSLA
is worth “more than zero, but not $340” (he doesn’t, BTW), many will have
already closed the tab.

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IBM
He thinks it's zero because Tesla is overleveraged and the equity will be
wiped out in the event of a default.

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mikestew
Yeah, I just clicked a linked story where he gives a more reasoned
explanation. Having read that, I’m not saying he’s wrong, but the market is
sure as hell saying he is. And we know what they say about markets and
irrationality. He’s obviously got a stronger stomach and more money to piss
away than I do. (Chanos is short TSLA, and keeps adding to that position, as
recently as a month ago.)

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echlebek
I don't understand how a company, which is shipping vehicles that people are
lining up to buy, could be worth zero.

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prepend
Debt. GM was worth zero a few years ago before bankruptcy.

Tesla owes over$1.8B with negative billions in earnings each year.

That’s how.

I actually believe that they will pull out and eventually turn a profit. But
not all do.

