Daily Management Review

Analysts: Tesla needs new funds


Wall Street is convinced that Tesla needs additional funds. Earlier, analysts at Morgan Stanley said that the company could raise $ 2.5 billion this year, as it increased production and was preparing to pay debts. However, Elon Musk will need more, and analysts agree that Tesla will be able to function the rest of the year without attracting fresh capital.

Heisenberg Media
Heisenberg Media
Earlier, Morgan Stanley analyst Adam Jonas gave a potential assessment to Tesla Mobility, a division of Tesla that will create a fleet of unmanned vehicles for joint use. Tesla Mobility costs about $ 17.7 billion ($ 95 per share), and it's about a tenth of the cost of Waymo (a division of Google), which Jonas estimated at $ 175 billion. The analyst estimated Cruise Automation, a division of General Motors, at $ 11.5 billion.

Calculation of the value of the business, which does not yet exist, reflects Tesla's stagnation in the field of autonomous cars, as well as progress achieved by other companies, like Waymo and GM Cruise, Morgan Stanley explained.

Morgan Stanley expects that Tesla will be the first to take the lead in developing the joint use of unmanned vehicles, and by 2030 it will have more such cars in the park than Waymo. However, then Waymo will seize the lead thanks to a more sustainable business model and by 2040 will reach $ 724 billion in revenue and $ 92 billion in operating profit, Jonas expects.

Head of Tesla Elon Musk spoke about the idea of sharing autonomous cars in the summer of 2016. Owners of electric cars will be able to rent their cars for taxi services and earn on it while they work at their main job or have a rest, he said then. 

In May 2018, Musk said that Tesla cars could become fully autonomous before the end of the year, but it is difficult to predict exact timing of the launch because of the need to wait for the approval of regulatory bodies.

It was a tough year for his business : Head of Tesla says that 2018 is the most difficult in his life. Musk admitted that his company after problems with production fell into the "logistics hell." Recently, the company launched the Tesla Direct service, delivering Model 3 directly to the customer.

This offer is available not only to those customers who live in the immediate vicinity of the plant in Vermont. Consumers in Los Angeles (possibly in other places too) received e-mail notifications, in which they are offered a delivery of the purchased electric vehicle to the doors of the house or office. Moreover, the delivery is free of charge.

As some customers do not rush to pick up a car they bought, an excess of electric cars accumulates in Tesla's warehouses, which complicates work and limits production.

It is still a question of the temporary launch of the Tesla Direct service. However, it cannot be ruled out that the term of its validity will be extended, if for the nearest weekend it will not be possible to unload the warehouses from the accumulated stocks of cars already bought but not yet delivered to the buyers.

source: bloomberg.com