Tesla closes at its lowest level in over 1 1/2 years (TSLA) – Finance

tesla stocks were under pressure on Monday, closing more than 4% and at the lowest level in more than 1 1/2 years.

Tesla shares hit a record high of $ 387.46 on August 7, the day the CEO Elon Musk tweeted that he had “funding secured,” to take an electric car in private ownership at 420 dollars per share.

But since then, it has been difficult for shareholders for two months, because Musk did not actually provide funding and was ultimately filed a claim with the Securities and Exchange Commissionwho accused him of making "false and misleading statements."

Musk settled the claim in late September, agreeing to resign as Tesla’s chairman for at least three years and pay a $ 20 million fine, which was supported by his employer. As a result of the fall, Tesla shares fell by 35%.

And Tesla shares have not yet come out of the woods. While the Bloomberg consensus on the shares at 291.65 – 15% above current levels – analysts are beginning to be a little more skeptical about the manufacturers of electric vehicles.

Last week, Tesla reported shipments that exceeded Wall Street estimates., but the stock sold out, as analysts began to look into the company's next earnings report.

Ultimately, this will come to profitability. Tesla second quarter results, released on August 1, showed a negative free cash flow of $ 739 million, which resulted in a loss of about $ 3 per share. This forced many street analysts to influence the capital injection on their models until the end of the year.

“We doubt that all hands on package deck for production and supply will lead to profitability in Q3, but we believe that switching to AWD production in Q4 may allow the company to achieve profitability on an adjusted basis in Q4, although we do not forecast GAAP "Said Cowen analyst Jeff Osborne after the September report on the company's supply.

"We still see the need to raise $ 4 billion in 4Q."


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