"Big Green" Is The Best At Destroying Cash & Losing Money
So the news the last few days are about "the big green solar company" with Elon Musk as the largest shareholder. We have been getting some questions as to why Tesla, a already in debt cash burning company would want a massively in debt even substantially larger cash burner and one of the worst stocks that is publicly listed. The truth is obvious to a few, however most don't see it.Ted "The Wolf" Strzelecki
The real reason is because they burn $2 for every $1 they earn. Elon's other company Space-X owns a large portion of "big green's" debt. Also Mr Musk sits on the board and is the largest shareholder of both Tesla and "Big green". So why does all this matter? Well he has a very large vested interest in making sure Green doesn't fail. Also he has an ego to protect and of course letting the largest solar company in America flop would be embarrassing. Ideally though it really all comes down to this: No one is interested in propping this company up anymore. Green loses about half a billion a quarter and is poised to lose another billion in '17. Couple this with already being approx 6 billion in debt (remember they lose 2 for every 1 currently) and its getting out of hand fast.
Of course they will try to spin it that this is a great idea or they are connecting two companies together that make sense. But the truth is no one would want to fund a company this badly run, in debt with the debt being higher than their assets (equals not enough to cover potential chapter 11 warrants) Here is your proof that investors are on to the bullshit and don't want this. Tesla stock tanked for two days in a row because of it. The Tesla shareholders do NOT want this. You don't have to even understand half of this, all you need to see is the bottom line. Company 1 is losing money so it decides to buy company 2 which loses significantly more, has a terrible future, and is being run by a family member that doesn't have the experience to turn a scale-able company profitable. Who in the hell would invest in that?
You know damn well you wouldn't. Mark my words, if the Tesla shareholders vote no on the acquisition of big green then it's share price (green's) will fall to single digits. Stay tuned...
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