Will Tesla Ever Earn a Profit? 1 Analyst Thinks So
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Tesla (NASDAQ: TSLA) is catching a lot of flak from the media this morning. CEO Elon Musk is planning to raise $1.5 billion in new cash from a bond issue, money it will need to build and deliver the 455,000 Model 3 sedans it now has on pre-order. But pointing to Tesla's rocketing valuation and $362 stock price -- up 57% so far this year -- The Wall Street Journal calls Tesla's capital raise a "missed opportunity." Instead of taking on debt, says the Journal, Tesla should be converting shares into cash before the stock price falls.
Not all analysts agree. Here are three things you need to know about that.
Source: Fool.com