Tesla is capitalizing on its stock's hot streak
Ben Kallo, an equity analyst with Baird who rates Tesla “Neutral,” said in a research note that the offering is “prudent given current share prices.”
“We believe TSLA’s decision to raise capital was smart; in fact we think investors will argue the offering should have been larger,” Kallo said. “That said, we do note management indicated on the Q4 call that it ‘doesn’t make sense’ to raise money given upcoming cash generation, so the announcement was somewhat surprising.”
Garrett Nelson, a CFRA equity analyst with a Sell rating on Tesla, said the offering was to be expected owing to “ambitious growth plans” and struck a more cautious tone on the company’s near-term outlook. “Recent speed bumps including a coronavirus-related delay in vehicle deliveries from its new China factory and Model X recall likely factored into management's decision to proceed with the offering,” he said. The company’s capex plan for 2020 of between $2.5 billion and $3.
Goldman Sachs and Morgan Stanley are lead managers for the offering, with Barclays, BofA Securities, Citigroup, Credit Suisse, Deutsche Bank and Wells Fargo Securities and Societe Generale also participating.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Elon Musk Now Several Billion Dollars Richer After Tesla Sells More StockTesla raised $2.3 billion from a secondary stock offering it announced a week ago. In the same time frame, Musk’s net worth surged by an even higher figure.
Les mer »
Gigi Gorgeous and Maye Musk Walked for Philipp Plein at MFWPhilipp Plein cast two Canadians to walk in his F/W20 show at Milan Fashion Week this weekend. See Maye Musk and Gigi Gorgeous in action here.
Les mer »
Elon Musk Now Several Billion Dollars Richer After Tesla Sells More StockTesla raised $2.3 billion from a secondary stock offering it announced a week ago. In the same time frame, Musk’s net worth surged by an even higher figure.
Les mer »
HP jumps after beating estimates and revealing new share buyback planIn addition to beating analysts' expectations, HP reiterated its opposition to Xerox's efforts to buy the company, which is four times larger than Xerox.
Les mer »
Disney, Amazon, ViacomCBS Shares Hit as Stock Market Tumbles Amid Coronavirus FearsFears of the Coronavirus spreading across the world sent major stock indices tumbling on Monday morning. Shares of Disney and Amazon were down more than 4% in early trading as reports that the dead…
Les mer »
Warren Buffett finally gave up his flip phone and got an iPhone - Business InsiderThe legendary investor Warren Buffett, who owns billions in Apple stock, finally gave in and got an iPhone.
Les mer »