Hacker News Reader

Comment by RcouF1uZ4gsC | Hacker News Reader

Looks like TSLA dropped nearly 10% today (including after hours). https://finance.yahoo.com/quote/TSLA?p=TSLA

With the Uber accident, I think the public is going to be very wary about over-hyped self driving claims. Tesla is a big offender in that regards where the marketing is that its collision avoidance and lane assistance technology is "Autopilot".

View on HN

This isn’t the only thing that has happened, a major hedge fund guy apparently predicted that they’ll be bankrupt within four months unless something really big changes because they’re spending is totally unsustainable.

Their corporate debt also got downgraded to B3 by Moody's today.

In a few years time we may look at the confluence of events as the beginning of the pricking of the bubble.

What's frustrating for me is I don't know how much to trust the ratings agencies any more after their involvement in the 2008 financial crisis. Moody's in particular was fined over $800 million. Admittedly part of that is ignorance of how the agencies have performed overall, but that is such a strong black mark. Trust is one of those things that once lost is hard to regain.

Maybe we can trust the bad ratings but not the good ones :P

It was junk when it was issued, so this isn't necessarily what caused market motion.

True, but their new borrowing rate is about 7% and last year it was 3% I think.

A guy managing 25 million isn't exactly a "major hedge fund guy"

Unless there was a typo in the article I read

It seems I was conflating that analysis with Moody’s downgrading them.

That definitely sounds more substantial and concerning.

We don't yet even know if Autopilot was engaged.

Reply on news.ycombinator.com