Tesla Motors (NASDAQ:TSLA) Share’s Falling, Leadership in Question

Tesla Motors (NASDAQ:TSLA) Share’s Falling, Leadership in Question

Tesla Motors (NASDAQ:TSLA) Share’s Falling, Leadership in Question


Shares of Tesla Motors (NASDAQ:TSLA) have been in reverse mode since the EV maker reported Q-1 earnings results that showed a wider-than-expected loss.

TSLA stock closed Tuesday at 208.69 a decline of about 15% from the prior-week’s close of 240.76. In the past 30 days, TSLA stock has fallen almost 25%.

Tesla CEO Elon Musk has show Wall Street that he can compete with any other carmaker when it comes to producing sleek, high-tech, desirable automotive designs., as did Henrik Fisker.

He has not shown that he can produce cars in high volume or at an attractive price point where he can meet consumers’ demands and do so profitably, as did Henrik Fisker.

Last week, an aggressive Elon Musk proclaimed that Tesla would produce 500,000 cars in Y 2018, 2 years ahead of his prior forecast. Thus raising stakes even higher by promising anyone who would listen that he will 2X the volume in Y 2020.

Wall Street is not buying what Elon Musk is selling, especially after the company reported Q-1 Y 2016 earnings results that showed a wider loss due to production problems, and that the firm;s

Even if Mr. Musk could meet his production target, it would cost more money than Tesla currently has. And if he could make even 50% of those numbers, who is going to buy the cars?

Tesla is “a cash-hungry, start-up Unicorn,” a Barclays analyst said as he forecasts a further 25% decline in TSLA stock.

As of the most recent Quarter, Tesla had a net debt position of $1.82-B, and an operating cash flow of negative $525-M, meaning an out of favor Elon Musk must raise plenty of cash to meet his aggressive production goals.

The Big Q: How does he plans to do that?

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 208.69 10 May-2016 -0.23 207.55 209.47 205 4,067,900
HeffX-LTN Analysis for TSLA:  Overall Short Intermediate Long
Neutral (-0.20) Bearish (-0.46) Bearish (-0.35) Neutral (0.22)

Stay tuned…

Paul Ebeling

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