Deludes the giant of Elon Musk. Morgan Stanley: “Quarter that Tesla will want to forget soon”
Data below expectations for Tesla. In the first three months of 2019, the company of Elon Musk saw all its main indicators disappoint the market.
The company closed the quarter with $ 2.2 billion in cash, a figure that fell by $ 1.5 billion compared to the last quarter of 2018, although $ 920 million was used to pay the overdue debt at March.
Particularly relevant is the one on losses per share, equal to 2.90 dollars against the just 69 cents provided by the consensus.
On the revenue side, the company scored 4.54 billion dollars against the expected 5.19 billion.
The Tesla loss is therefore settled at 702.1 million dollars or 4.10 dollars per share.
After the publication of the data, the stock slipped on the stock exchange, reaching a loss of up to 3 %.
The losses – analysts explained – indicate that the company is still in full readjustment after the 2018 growth.
The company had already spoken in the past few days of a first-quarter income “negatively affected due to delivery volumes lower than expected and various price changes”.
According to what Morgan Stanley analysts had already predicted earlier this month, the first quarter of 2019 could be “something Tesla will soon want to forget”.
Quarterly Tesla: disheartened investors
There was nothing good about Tesla’s accounts for the first quarter of 2019.
Already in recent weeks, expectations had been significantly reduced, especially after the company of Elon Musk had reported deliveries numbers drastically down and well below expectations at the beginning of April.
With 63,000 vehicles in the first quarter of 2019 corresponding to the largest contraction ever recorded, the stock had, in that case, recorded losses on the Stock Exchange up to 11%.
The data and the consequent collapse on Wall Street have done nothing but give effect to the extremely negative sentiment that has been going on particularly since the beginning of the year.
Tesla shares have lost almost 15% this year, and concerns over the company’s financial stability weigh heavily on investors, who are almost ready today to bet against the company.
Quarterly Tesla, what the market said
Craig Irwin, an analyst at Roth Capital Partners, foreshadowed “weak” accounts for the first three months of 2019.
In fact, Irwin noted that investors’ attention would in fact remain on liquidity and short-term deliveries; given that the latter should mark at least a target of 85,000 at the second quarter to avoid the collapse of confidence:
“If liquidity is less than 2.5 billion dollars, we believe investors should shift their attention to a capital increase.”
The issue of the capital increase has been suspended for a long time for Musk’s company, with many analysts ready to support the need to strengthen the budget.
Yet Musk himself has repeatedly confirmed that he is not at all oriented towards a similar move at the moment, and the line seems to remain the one despite the partial opening of the beginning of the week when the CEO has hinted at a move towards the capital market.
On that same occasion, he also introduced the arrival of a self-driving taxi service that does not require any driver. The date indicated by Musk for the launch – 2020 – has however turned up their nose on Wall Street, extremely doubtful now on the promises coming from Tesla.
Goldman Sachs called on investors to stay away from the company, remembering the big debt and indicating a sell rating.