Tesla is going to have to raise $2.5 billion in capital

0
223


Morgan Stanley forecasts Tesla will raise $2.5 billion in the third quarter of this year, coming “from strategic sources,” Jonas said. The firm has a $240 a share price target on Tesla’s stock, as Jonas said “concerns over demand and liquidity” will weigh on the stock.

“We think Tesla is waiting to demonstrate a recovery in demand and cash flow before looking to stabilize its balance sheet,” Jonas added.

On the company’s conference call with investors, Musk deferred on the company raising capital any time soon.

“I don’t think raising capital should be a substitute for making the company operate more effectively,” Musk said. “I do think there is some merit to raising capital, but is sort of probably about the wrong timing.”

Tesla CFO Zach Kirkhorn also warned shareholders that the company will likely report a loss for its second quarter, as well.

Tesla’s stock fell 1% in premarket trading from Wednesday’s close of $258.66 a share.

WATCH: Musk should not make wild forecasts, says Sonnenfeld



Source : CNBC