Tesla’s (NASDAQ:TSLA) $1-B+ Debt Payments Loom, Wall Street Bankers Ready to Pounce
- The fledgling niche EV maker has over $1-B in debt that will come due between November and March
- Bankers are coming to Tesla with financing ideas as debt payments loom, but Tesla officials have indicated that the automaker does not feel the pressure to seek new financing.
- Tesla did not immediately respond to a request for comment
Tesla did not immediately respond to a request for comment.
The automaker has 3 debt payments that will come due between November and March: a $230-M convertible bond with a conversion price of $560.64 that is due in November, a $157-M non-recourse loan that is due in December, and a $920 million convertible bond with a conversion price of $359.87 that is due in March.
Tesla’s finances have been an area of concern for the automaker throughout its 15-yr history, as it has posted just 2 profitable Quarters and No profitable years.
The EV and its CEO, Elon Musk, have said it would be consistently profitable starting in Q-3 of this year. Tesla is expected to release its Q-3 earnings report in November, and part of the reason why so much focus and scrutiny has been placed on Tesla’s ability to hit self-imposed production goals that Mr. Musk has repeatably said are vital to earning steady profits.
During Q-2 of Y 2018, Tesla posted an adjusted loss per share of 3.06, compared to an analyst forecast of -2.90 per share on $4-B in revenue compared to an analyst forecast of $3.97-B. The EV had a total of $2.2-B gross cash on hand at the end of the Quarter. Much of that belongs to consumer with cancellable orders for not delivered or as yet made cars.
I believe that Tesla is no longer an investment grade high growth stock, it is a speculation being played up and down by professionals, Caution!
|HeffX-LTN’s Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Neutral (-0.15)||Neutral (0.10)||Neutral (-0.19)||Bearish (-0.38)|