Tag archives for tesla stock

Why Tesla will need more loans to make it through 2013

It’s fun to bet against Elon Musk and Tesla – that’s the best reason we can find for so many people doing it even though the man, his company and his cars are still here and still very popular. The latest name inscribed in the column labeled “Skeptical of Tesla” is John Shinal at Market Watch who, in year-end commentary on Tesla’s financials, says that the “carmaker’s financials are reminiscent of a dot-com’s.” He does not mean that in the good way.

To be fair, Shinal isn’t exactly betting against Tesla, he’s saying that if you check the bottom lines, the only thing keeping Tesla alive is the hundreds of millions in Federal Department of Energy loans it has received. Based on its filings, he says the company has less than six months of cash on hand, hasn’t produced as many cars as it promised and had to lower its revenue forecast for 2012, has had a “year of net losses and negative operating cash flow,” and was underwater by at least $37 million at the end of the third quarter.

But Shinal’s not done there, summarizing Tesla as an operation with “a poor habit of failing to deliver to customers the cars it has promised them, while simultaneously raising the prices of those yet-undelivered cars,” and “a lousy level of customer service.” He says there are more damning things to be found in Tesla’s SEC registration settlement from September, but we’ll have to wait for his next column to find out what those are. The takeaway, in Shinal’s opinion, is that even though Tesla will keep getting money from the government, that investors have no business dealing in Tesla stock.

Early in his piece, Shinal says Tesla’s financials are worse than those of Zynga and Groupon, two hot dot-coms that have fallen on their faces since their IPOs. Shinal knows far more about finances than we do, but we wonder if it makes the most sense to compare a brand new car company developing brand new technologies – with the colossal amounts of up-front cash each one of those things requires, and a company with Tesla’s record so far – to a social media game developer and an online coupon distributor. Head over to Market Watch to read the full piece.

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By Jonathon Ramsey

Tesla selling new stock, debt worth $830m in order to pay off DOE loan

Anyone paying attention to the electric vehicle scene for the last few weeks knows that the stock value of Tesla Motors has been climbing faster than a SpaceX rocket. As of this writing, TSLA is sitting pretty at $92 a share. Three weeks ago, it was at a then-record-high of $53.

In light of all the commotion, Tesla is going to make some money and pay back the government. The company announced yesterday it will sell 2.7 million shares (with a value of $229 million given the closing price of $84.84 yesterday) and $450 million in convertible senior notes. All told, Tesla will sell up to $830 million in shares and debt and use the money to pay back its $465-million Department of Energy loan. The DOE has agreed to let Tesla modify the terms of its loan and repay the money early., but the exact timeline of the repayment was not specified. As Tesla CEO Elon Musk put it to Bloomberg earlier this month, “Of all the car companies that got government funding, we got the least, and we’re going to pay it off first. That’s not bad.” Musk will also buy $100 million worth of shares, $45 million in common stock and $55 million to be be “purchased directly from Tesla in a subsequent private placement.”

The DOE handed out four loans through the Advanced Technology Vehicles Manufacturing Loan Program: along with Tesla, Ford got $5.9 billion, Nissan got $1.6 billion and Fisker got $529 million. Tesla’s press release is available below.

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By Sebastian Blanco

Tesla Stock Rises After Elon Musk Teases ‘Exciting Announcement’


Elon Musk and Tesla have been making headlines the last couple of months, from dealing with The New York Times to promising an affordable electric car within five years.

The American automaker’s stock rose the most in nearly five weeks yesterday after CEO, Elon Musk tweeted that the company plans a “really exciting” announcement next Tuesday. According to Musk, he’ll be putting his money where his mouth is in a very major way. The announcement was originally going to come Thursday, but Musk later stated that it’ll come a few days later so that there would be no end of the quarter distractions.

SEE ALSO: BMW 3 Series Rival “3 to 4 Years Away” Says Musk

Tesla surged as much as 5.2 percent after the announcement, but closed 2.5 percent higher. The 5.2 percent was the biggest intraday jump for the automaker since February 19th.

It’ll be interesting to see what the news is, considering Tesla has no plans to display at the 2013 New York Auto Show.

[Source: Bloomberg]

Discuss this story at Tesla-Buzz.com

By Jason Siu

Tesla Stock Tops $100 for First Time


Tesla CEO Elon Musk must be feeling good today. The share price for his electric car company gained 7.7 percent today and rose to $104.58 shortly after noon.

Bloomberg reports that the company’s shares were trading in high volume with 9.3 million changing hands compared to the 5.9 million daily average. Through May 24 the shares have almost tripled in value.

Last week the company fully repaid its debt to the Department of Energy years in advance. Tesla gathered a frenzy of media attention after reporting its first quarterly profit of $11 million.

Tesla is expected to make an announcement about the expansion of its supercharger network soon. The announcement was initially expected last week, but Musk delayed it citing the loan repayment as the reason.

[Source: Automotive News]

Discuss this story at TeslaForums.com

By Luke Vandezande

Wall Street loves Tesla’s Elon Musk, values the brand higher than Fiat

Tesla side marker

Tesla’s value on the stock market far exceeds the number of vehicles it contributes to the automotive market. According to a report from Automotive News, Tesla is currently valued at $8.8 billion. Almost unbelievably, though we’ve never claimed to have a firm grasp on the inner workings of the stock market, that’s a full billion dollars more valuable than Fiat and three times more valuable than PSA Peugeot Citroën, says the report.

How unfathomable is that statistic? Consider the fact that Tesla, a ten-year-old company, just managed to turn its very first profit last quarter and has produced fewer than 10,000 vehicles in its lifetime. How does that compare to an automotive giant like Fiat? Well… it doesn’t – The brand sold 44,772 Fiat 500s in the United States alone in 2012, and it owns or controls the Chrysler portfolio of brands along with Ferrari and Maserati… not to mention the hundreds of thousands of cars Fiat Group sells yearly in the rest of the world.

Granted, the number of vehicles sold by a brand is just a small portion of its value, but you may still wonder, Why is such a seemingly small player in the global automotive marketplace such a big deal on Wall Street? According to AN, it has a lot to do with its controversial and headline-grabbing CEO, Elon Musk, and the way he disseminates company information to his investors. How so? We suggest you take a good look at the article here for the whole story.

By Jeremy Korzeniewski

Tesla stock reaches record high, brushes $53

Tesla Motors logo on Model S

Tesla Motors shares hit a record high Tuesday morning, reaching almost $53 a share in NASDAQ trading before leveling off slightly to about $51 as of late this afternoon Eastern time. Tesla touched $52.92 shortly after the markets opened on Tuesday. Shares for the company, which went public at $17 a share in June 2010, have jumped more than 50 percent during the past year.

The California-based maker of the all-electric Model S said earlier this month that Q1 was its first ever quarter in the black, noting that it beat sales targets. That news followed up Tesla chief Elon Musk’s proclamation that it would pay back its US Department Energy loan in roughly half of the ten-year timeframe previously set. Musk has been vocal and optimistic about his company’s future, which lead to an excited Tweet about an upcoming announcement, a Tweet that might get him in trouble with the SEC.

Musk isn’t the only one who sees good things in Tesla’s future. Last week, Time Magazine named Musk one of the 100 most influential people in the world. On Monday, Seeking Alpha went as far as to say Tesla shares could hit $144 in the “near mid term,” especially as short sellers who expected the stock to fall are forced to cover their losses. Motley Fool took a more measured approach, saying that factors such as Tesla’s cash position, its ability to sell cars to those other than early adopters and the prospect of increased EV competition from larger automakers will determine whether the stock surge is justified.

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By Danny King

Tesla raises $1 billion as stock climbs; predictions have it at $200 (or $37) *UPDATE

tesla model s logo

Despite the company’s recent string of successes, there’s still a lot of skepticism about Tesla out there. Some of the negativity focuses on the lack of recharging infrastructure, some on the company’s expensive cars and how it’ll be difficult to make a mass-market car. And when it comes to the company’s stock price – TSLA is currently at around $90 – the predictions are all over the map. Some say it’s still worth shorting (that is, predicting it will drop). Some say it could reach $200 before too long; others warn it will fall to somewhere in the $20-$40 range.

“There is a fundamental view of a scenario where Tesla becomes the next GM or Ford.”

Still, the big news – that is, something that’s actually happened, not just bloviations about the future – is that Tesla raised more than a billion dollars in cash last week by increasing the amount of debt and equity it was offering. Instead of selling a total 2.7 million common shares, CEO Elon Musk put up 3.39 million, and bought $100 million himself. This showed confidence, which was admittedly already there, and Tesla raised far more than the $830 million originally expected. The money will be used, in part, to pay back the US government for the $465-million Department of Energy loan.

The good news prompted an unnamed banker to tell IFR what it looks like on the other side of the skepticism spectrum: “[CEO Elon] Musk has a vision of creating a $50 billion-plus company in five years,” adding, “There is a fundamental view of a scenario where Tesla becomes the next GM or Ford.”

*UPDATE: Musk just Tweeted that Tesla will likely pay back the DOE loan Wednesday.

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By Sebastian Blanco