Tesla increased its required downpayment, and one Wall Street analyst says this could help alleviate the need to raise cash.
In a note to investors out Friday, Jonas suggested the increased down payment was a"pseudo-capital raise.""We don't doubt that reducing the price point and cutting price could help pull-forward cash and delay a painful working capital outflow that may have otherwise accompanied an abrupt slowdown in production," Jonas added.
"In addition to the support of working capital, Tesla appeared to raise the required deposit amount to $2,500 . If orders jump by 100k units , that alone can pull in $250mm of cash onto the balance sheet. While only 1/10th of the $2.5bn we have forecasted Tesla to raise in the equity market in 3Q... it's nevertheless a material sum."
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