Tesla Shifts From Growth To ‘Distressed-Credit’ Story, Morgan Stanley Says




<div _ngcontent-c14 = "" innerhtml = "

Judge considers whether to retain Tesla's CEO, Elon Musk, in contempt through a Tweet

Tesla CEO Elon Musk leaves the federal court after attending a hearing on April 4, 2019 in New York City.

false images

Tesla has entered a dangerous phase in his relatively short life, switching from a company that many believed had great potential for long-term growth to a history of "credit problems and restructuring," according to an influential Wall Street badyst.

Morgan Stanley stock badyst Adam Jonas, a long-time Tesla bull that has grown increasingly bearish, they discussed concerns about the company in an almost one-hour call with investors that was registered and leaked online on Wednesday. The problems include signs that demand for Tesla electric cars is decreasing, sales in China may not be as strong as expected and the next model And crossover It is not convincing enough, along with the ongoing costs and debt concerns.

As recently as the end of 2018, "Tesla was seen as a growth story," Jonas said in the call. "Today, supply exceeds demand, they are burning cash, nobody cares about the Model And … Tesla does not look like a growth story, at least the feedback we receive, which is quite one-sided … See more Like an anguished credit history and a history of restructuring. "

The leaked comments come hand in hand with a research note this week in which Jonas cut his Price "in the worst case" for Tesla shares at only $ 10, which could be triggered by factors that include the loss of the estimated sales targets for China up to 50%. The stock fell 6% in Nasdaq operations on Wednesday to $ 192.73, its lowest level since December 2016. Tesla fell 42% this year.

The company did not respond immediately to a request for comment on the matter. Jonas's comments were previously reported by Business Insider. & nbsp;

Tesla fell back into the red in the first quarter, hit by lower deliveries of the forecasted deliveries of the S, X and 3 electric cars models. And while it has faced grim circumstances in the past, especially in late 2008, when the recession and the collapse of the financial market almost ceased to exist, CEO Elon Musk In general, he has maintained the patience of the investors in the face of the constant annual losses in the nine years of Tesla as a public company.

Vehicle sales "basically fell a third sequentially from 4Q to 1Q & # 39; 19, and if annualized the results of Q1 will reach approximately 250,000 units," said Jonas. "That's more than 100,000 units below the lower limit of the company's goal of 360,000 to 400,000 for deliveries this year."

And while Tesla has said it is targeting sales of between 90,000 and 100,000 units in the second quarter, the number of "whispers" seems to be in the 70,000, perhaps between 70,000 and 70,000, "he said.

Jonas's harsh perspective also comes right after Tesla. raised $ 2.7 billion this month In his last offer of debt and capital. Interestingly, Morgan Stanley was among the investment banks that participated in the sale of those offers.

In his discussion, Jonas noted that Tesla missed the opportunity to raise funds late last year, when his finances were briefly stronger. "We thought they would raise capital, but we felt there was a high probability that there would be a strategic participation, someone who would take the job, provide some technical knowledge and a certain vision in addition to Tesla's vision."

Instead, "they are raising capital close to the minimum, there is no strategic commitment," he said. "Everything was institutional."

">

Judge considers whether to retain Tesla's CEO, Elon Musk, in contempt through a Tweet

Tesla CEO Elon Musk leaves the federal court after attending a hearing on April 4, 2019 in New York City.

false images

Tesla has entered a dangerous phase in his relatively short life, switching from a company that many believed had great potential for long-term growth to a history of "credit problems and restructuring," according to an influential Wall Street badyst.

Morgan Stanley stock badyst Adam Jonas, a Tesla bull that has grown increasingly bearish, discussed concerns about the company in a nearly one hour call with investors that registered and leaked online on Wednesday. Problems include signs that demand for Tesla's electric cars is declining, sales in China may not be as robust as expected, and the next Model Y cross is not convincing enough, along with the ongoing costs and concerns of Debt.

As recently as the end of 2018, "Tesla was seen as a growth story," Jonas said in the call. "Today, supply exceeds demand, they are burning cash, nobody cares about the Model And … Tesla does not look like a growth story, at least the feedback we receive, which is quite one-sided … See more Like an anguished credit history and a history of restructuring. "

The leaked comments come shortly after a research note this week in which Jonas lowered his "worst case" price for Tesla shares to only $ 10, which could be due to factors such as the lack of targets for estimated sales for China up to 50%. . The stock fell 6% in Nasdaq operations on Wednesday to $ 192.73, its lowest level since December 2016. Tesla fell 42% this year.

The company did not respond immediately to a request for comment on the matter. Jonas' comments were previously reported by BusinessInsider.

Tesla fell again in the red in the first quarter, hit by deliveries smaller than those expected for model S, X and 3 electric cars. And although in the past it faced grim circumstances, especially at the end of 2008, when the recession and the collapse of the financial market almost ceased to exist, CEO Elon Musk has generally maintained the patience of investors in the face of constant annual losses in the nine years of Tesla. public company.

Vehicle sales "basically fell a third sequentially from 4Q to 1Q & # 39; 19, and if annualized the results of Q1 will reach approximately 250,000 units," said Jonas. "That's more than 100,000 units below the lower limit of the company's goal of 360,000 to 400,000 for deliveries this year."

And while Tesla has said it is targeting sales of between 90,000 and 100,000 units in the second quarter, the number of "whispers" seems to be in the 70,000, perhaps between 70,000 and 70,000, "he said.

Jonas' tough outlook also comes just after Tesla raised $ 2.7 billion this month on his latest debt and equity offer. Interestingly, Morgan Stanley was among the investment banks that participated in the sale of those offers.

In his discussion, Jonas noted that Tesla missed the opportunity to raise funds late last year, when his finances were briefly stronger. "We thought they would raise capital, but we felt there was a high probability that there would be a strategic participation, someone who would take the job, provide some technical knowledge and a certain vision in addition to Tesla's vision."

Instead, "they are raising capital close to the minimum, there is no strategic commitment," he said. "Everything was institutional."


Source link

Check Also

New Ford F-150 with built-in generator, over the air upgrades

2019 Ford F-150 Limited pickup Mack Hogan | CNBC The importance of a new F-150 …