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Old 01-03-2023, 12:36 PM   #2414
nfotiu
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Join Date: May 2002
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Quote:
Originally Posted by JohnnyB View Post
I don't think they're close to a death spiral. They're just leading the market down as we go into a recession following a bubble in which growth stocks got pumped to wild valuations and for which they were the poster child. That doesn't mean they're headed for bankruptcy or acquisition. Share price =/= business. I wouldn't be surprised to see Musk turfed as CEO at some point, but they're not likely to die as a company, and they could well be a good buy again coming out the other side of the recession.
All those things are putting downward pressure on their stock for sure. But combine that with their customers and potential customers turning on them, there is not an easy way out. Without customers, you aren't going to have investors betting on their future. Without investors betting on their future, they aren't going to have any attractive new products... and so on.

They have a Musk problem, and who knows what he had to do to finance his Twitter transaction. Is Tesla's plummeting stock and Twitter being run into the ground going to have his financers calling loans or suing him? If he has to drain more of his Tesla stock, that's going to be a problem for Tesla.

Musk seems to be digging in and digging a bigger hole with every move, and it's hard to see a way out of this mess for Musk. Tesla needs to find a way to ditch him if they even can.
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