Tesla has entered a dangerous phase of his relatively short life, according to influential Wall Street, turning from a company many believed to have tremendous long-term growth potential to a business analysts develop with "distressed loans and restructurings."
Morgan Stanley stock analyst Adam Jonas, a longtime, increasingly bearish Tesla cop, spoke in a nearly one-hour conversation with investors about concerns over the company, which recorded online on Wednesday The problems include signs that demand for Tesla's electric cars is dwindling, the Ver Purchases in China may not be as robust as hoped and the forthcoming Model Y crossover is not convincing enough, as well as the ongoing cost and debt problems.
By the end of 2018, "Tesla was considered a growth story," said Jonas on the conference call. "Tesla is not considered a growth story, at least the feedback we received is pretty one-sided … more is being seen." as a distressed credit and restructuring history.
The leaked comments follow a research report this week, in which Jonas lowered his "worst case" price for Tesla shares to only $ 10, which could be triggered by factors including the lack of estimated sales targets for China by up to 50%. The stock fell 6% on Wednesday in Nasdaq trading to $ 192.73, its lowest level since December 2016. Tesla fell 42% this year.
The company did not immediately respond to a request for comment on this matter: Jonas & # 39; 's Opinion has already been published by BusinessInsider.
Tesla fell in the red again in the first quarter, as deliveries of the S, X and 3 electric vehicles were below forecasts. In the past, it faced grim circumstances, especially in late 2008 when the recession hit and the financial market crash almost brought them to a standstill, CEO Elon Musk has kept the patience of investors in view of the constant annual losses in Tesla's nine years as a corporation in general.
Vehicle sales "dropped substantially by one-third from 4Q to 1Q 19, and if you calculate the results for 1Q on an annualized basis, you will reach around 250,000 units," Jonas said. "That's more than 100,000 units below the low end of the company's target of 360,000 to 400,000 deliveries this year."
Tesla aims to achieve a sales volume of between 90,000 and 100,000 units in the second quarter, the "whisper" number "Seems to be in the 70,000s, maybe in the middle up to the top 70,000," he said.
Jonas & # 39; s Difficult outlook also comes after Tesla raised $ 2.7 billion for its most recent bond and equity offering this month. Interestingly, Morgan Stanley was one of the investment banks involved in the sale of these offerings.
In his discussion, Jonas noted that Tesla missed an opportunity to raise funds late last year when his finances looked better for a short time. "We thought they were raising capital, but felt there was a very high likelihood of strategic ownership, someone who would be on the board, providing some expertise and a vision in addition to the Tesla vision."
"They raise capital near lows, not a strategic buy-in," he said. "It was all institutional."