This idea isn't as crazy as it might seem.
In fact, it's been done before by a company called Ford.
If Tesla were to put up its logo as an asset for a loan, it could land the automaker billions of dollars, says at least one analyst.
In a long-winded article published by Automotive News, one small tidbit caught our attention.
Tesla's decision to remain public may mean that a new capital raise is coming soon. This could be achieved by several different methods, but perhaps the simplest one is the idea of offering up just a logo as an asset for a big loan. Is it really that easy?
As Automotive News explains:
With demand for the electric-car maker’s bonds flagging, some have started pointing to the model that Ford Motor Co. deployed during the depths of its financial distress more than a decade ago. The centerpiece to this approach: Putting up assets, including the iconic Blue Oval logo, as collateral for cheap lines of credit.
Ford's decision to put the Blue Oval on the line resulted in a valuation of the logo at some $8 billion at the time. A similar move by Tesla right now could bring half that amount in perceived value, according to Hitin Anand, an analyst at CreditSights. Anand states:
Pledge those assets and have that in your back pocket. It’s prudent to build liquidity.
Of course, there's a lot to potentially lose here, but if Tesla stays afloat, it's a simple method for securing credit.
In addition to the logo, Tesla has several other assets it could put on the line. The major ones include:
- Fremont Factory
Source: Automotive News