Tesla’s (NASDAQ:TSLA) $1-B+ Debt Payments Loom, Wall Street Bankers Ready to Pounce

Tesla’s (NASDAQ:TSLA) $1-B+ Debt Payments Loom, Wall Street Bankers Ready to Pounce

Tesla’s (NASDAQ:TSLA) $1-B+ Debt Payments Loom, Wall Street Bankers Ready to Pounce

$TSLA

  • 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
Wall Street’s bankers are coming to Tesla (NASDAQ:TSLA) 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.

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)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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