Tesla (NASDAQ:TSLA) Burns Cash, Stock Drops, Rich Rivals Watch
$TSLA, $AAPL, $GOOGL, $AMZN
Tesla Inc (NASDAQ:TSLA) lost a buy rating from its longtime Bull Morgan Stanley (NYSE:MS) as a firm analyst boosted projections for how much cash the fledgling, money losing EV carmaker will burn through as rich rivals bite on its business.
Adam Jonas, Morgan Stanley’s top auto analyst, has been one of the biggest advocates for Tesla stock, envisioning offerings of a ride-for-hire service that could double the value of the company.
Mr. Jonas now sees operating losses continuing through next year and estimates the company will consume $3.1-B of cash this year, compared with an earlier estimate of $2.3-B.
The expansion by Alphabet Inc.’s Waymo of its self-driving Chrysler Pacifica minivan fleet and Apple Inc.’s plans to test of autonomous cars in California amount to “an assault by large tech firms” of the market, he said.
China could will prove virtually inaccessible to Tesla as a provider on-demand automated mobility services, Mr. Jonas said, which would limit the long-term prospects for the company in the world’s largest auto market.
Tesla dropped as much as 3.8% after jumping 52% YTD through last Friday. The shares fell 2.75% to 315.88 at the close in New York trading, the biggest decline in the 29-member Bloomberg World Auto Manufacturers Index.
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Bullish (0.45)||Neutral (0.17)||Very Bullish (0.61)||Very Bullish (0.58)|