Hacker News Reader

> If Tesla finds itself in dire financial straits, they'll be wrapped up and shut down. If GM finds itself in dire financial straits (again), they'll be bailed out (again) or merge, or something. They won't go away.

> Which one is more likely to pay back your bond? The one with a virtual guarantee from the government that they'll stay in business, or the tiny startup with a bright future?

There's something I'm pretty sure you don't know. During the last bankruptcy and government bailout, GM bondholders got decimated to the tune of tens of billions (!) of dollars. If hey, there might be another bailout! is the thinking behind the credit rating, it ought not raise the rating.

When GM was bailed out, they declared bankruptcy. That means bondholders got close to nothing.

I'm sure you're right about Tesla being left to wither, where big auto would be bailed out again, but that doesn't address this at all:

> competitive and technological displacement risks

Both GM and Chrysler went through bankruptcy in 2009.