Tesla just made a stealth move to alleviate one of Wall Street's biggest concerns, analyst says
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."
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk plans to announce some Tesla news on Thursday — here’s what Wall Street is expectingThe billionaire's spat with the SEC has created a buying opportunity, one analyst said.
Read more »
Tesla shares down 5 percent after Model 3 launch, sales shake-upWall Street reacted nervously on Friday to Tesla Inc's move to shut its net...
Read more »
Tesla shares down after surprise Model 3 price drop, store cutsWall Street reacted nervously on Friday to Tesla Inc's move to shut its net...
Read more »
Tesla just made a stealth move to alleviate one of Wall Street's biggest concernsTesla increased its required downpayment, and one Wall Street analyst says this could help alleviate the need to raise cash.
Read more »
Wall Street moves higher on trade optimism after slow weekWall Street's main indexes climbed on Friday, after a quiet week, as strong...
Read more »
Gap shares surge 24 percent as Wall Street praises splitGap Inc shares surged as much as 24 percent on Friday as a number of Wall Street...
Read more »
Wall Street is having its best start to the year in nearly three decadesDecreasing trade tensions with China and less fear about rate hikes from the Federal Reserve have helped push stocks higher.
Read more »
Ex-Fed's Dudley: Wall Street should stop blaming the central bank every time stocks dropDudley, who retired from the Fed in June 2018, said the central bank's actions have become a 'convenient whipping boy.'
Read more »
U.S. stocks edge downward as Wall Street takes a pauseWall Street's main indexes fell slightly on Thursday as support from better...
Read more »