Tesla needs tons of cash to run its operations and make new investments. Its near-term projected liquidity is under severe stress. And an addition of another cash strapped company will only compound the problem. While in the long term, a better than expected demand of Model 3 may ease the cash crunch, the near-term prognosis is not good. And  to get to the long-term survival in the short-term is important. The Altman Z-score shows Tesla runs a high risk of bankruptcy and the risk increases considerably. The most important task for Tesla now should be to shore up liquidity. After all, cash is always the king. Tesla stock is currently at best a speculative bet.

Read More

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s