Good thing the market is closed tomorrow for Good Friday. There was an article in the Wall Street Journal today saying that Tesla will soon need more cash, which will not be nearly as easy for Tesla to raise as it has been. And that article was published before the recall was announced.
Some hedge fund managers like Mark Yusko think Telsa is doomed and is an easy short.
More info from Stansberry Research:
"According to noted Tesla bear John Thompson – CEO of Vilas Capital Management – the company may not even survive the summer. As he wrote in his latest letter to investors last week...
"I think Tesla is going to crash in the next 3-6 months.
"[This is] partially due to their incompetence in making and delivering the Model 3, partially due to falling demand for the Model S and X... partially due to the extreme valuation... partially due to their horrendous finances that will imminently require a huge capital raise... partially due to a likely downgrade of their credit rating by Moody's from B- to CCC (default likely) which should scare their parts suppliers into requiring cash on delivery (a death knell)... partially due to the market's recent falling appetite for risk... and partially due to our suspicions of fraudulent accounting activities, evidenced by 85 SEC letters/investigations and two top finance people leaving in the last month.
"We are doubtful that they can raise a meaningful sum in the face of these material issues... Tesla, without any doubt, is on the verge of bankruptcy."
Yeah, I have been seeing tons of articles lately about Tesla being doomed. All markets are getting slaughtered at the moment, and it seems Tesla is hanging on by a thread at the moment. If markets continue to fall dramatically, Tesla could be in some big trouble!