Tesla Inc.'s shares fell early Wednesday before reversing this loss as analysts weighed on first-quarter production and delivery figures released early Tuesday and disappointing expectations.
The stock closed 6% on Tuesday as investors focused more on the company's statement that they would not have to spend more money this year to alleviate the liquidity issues that have impacted in recent weeks.
But JP Morgan analysts noted that Tesla made the same comment in early 2016 before raising several billion dollars, which was necessary to reach the target of producing 100,000 to 200,000 Model 3 in the second half of the year.
"Our own model does not involve a capital increase, but our lower estimates show the company at less than $ 1
Brinkman further noted that deliveries, Tesla's sales representative, remained more or less unchanged from the fourth quarter, though growth should be "over-compressed" with the addition of the company's Model 3, the company's mass-market sedan , 19659002] Tesla
TSLA, + 3.47%
said that deliveries reached 29,980 vehicles in the quarter, including 8,180 model 3 sedans, 11,730 model S luxury sedans, and 10,070 model X SUVs. Analysts surveyed by FactSet had expected that 38,000 vehicles will be delivered this quarter, of which 12,300 should be model 3 sedans.
J.P.. Morgan reiterated its underweight stance and lowered its price target from $ 190 to $ 185 or 30% below current trading levels.
RBC Capital analyst Joseph Spak reiterated his neutral rating and lowered his price target to $ 305 from $ 380, while Tesla gave investors some relief by saying that this year would not require a debt or equity increase raises longer-term Concerns.
"Tesla has mostly outdated the missing goals, but we find that the patience of investors is decreasing," Spak wrote. "So a lower bar could be good, and long-term bulls and true believers might find that level an attractive entry point."
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KeyBanc analysts are more optimistic, saying the report is better than feared and in line with it View that the stock is oversold.
"Our equity bias remains positive in the near future and is still very low to match the productivity and profitability improvements of Model 3," analyst Brad Erickson writes. "In the longer term, we remain sector-heavy in terms of equities as we ultimately struggle to capture the company's innovative superiority in manufacturing, batteries, software, AI and competition."
Tesla's High Yield Bonds The $ 1.4 billion of 5,300% maturing in 2025 rose on Tuesday, peaking 50bp, according to the MarketAxess trading platform. The Notes were last quoted at 28 basis points per day or with a yield spread of 462 basis points over comparable Treasuries.
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Yesterday's marks fell below 90 cents on the dollar after Moody's downgraded the issuer's rating from B2 to B3 and put it further into speculative or junk Status catapulted. Moody & # 39; s mentioned the "significant shortfall" in the production rate of Model 3 as well as the "liquidity pressure" of the company due to its large negative free cash flow and floating convertible bond maturities ($ 230 million in November 2018 and $ 920 million in US dollars) March 2019). The notes were last traded at 88.25 cents.
Tesla shares rose 1.2% in the morning trade, but fell 11% in the last 12 months to Tuesday, while the S & P 500
has gained about 10% and the Dow Jones Industrial Average
added about 15%.