Morgan stanley private memo leaked regarding tesla. This Jonas guy us3d to be one of the biggest TSLA bulls on the street.
Highlights:
"Tesla is... A distressed credit and restructuring story."
"Even at a zero dollar equity value, the enterprise value to sales ratio of Tesla would be fifty percent or so higher than a VW. It would be in the range of a BMW EV to sales. At zero dollars!"
"They've built this hulking physical infrastructure to supply more like a million cars a year. Not 350,000 cars a year. Right? And that's what... That's what's creating this bleeding."
"To be simple about it [...] Does demand recover or not? Okay? And then... And then, whether demand recovers or not, is it convincingly sustainable?
"If demand does not recover, and one could argue that many signs in the fixed income market would tell you that there's questions to that, then this becomes a restructuring story. We think that, 'yes, that's right, Tesla, tech company, the auto industry's biggest restructuring story?' And people will begin to a— run scenarios about management—a management team that really went in there and cleaned house. What could they do to lower the break-even point? In terms of head count reductions or writedowns for risk mitigation and liability containment, **
[Apple] may not want to expose themselves to the unlimited liability of being involved in owning a business where occasionally a car catches on fire... takes down a building... Perhaps those big tech firms don't want to expose themselves to that up-front, and moreover, they realize that the autonomous 'race' is more of a marathon, where over a ten or twenty-year period you collect real-world miles."