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Tesla Stock: Wall Street Seems To Be Dumping Elon Musk

Tesla Stock: Wall Street Seems To Be Dumping Elon Musk
Elon Musk, Tesla Factory, Fremont (CA, USA) Maurizio Pesce / Flickr CC BY 2.0


Tesla Stock: Wall Street Seems To Be Dumping Elon Musk

Tesla is set to announce its second quarter 2016 financial results early next week, and this is making a number of analysts anxious about what’s next for the electric maker, whose future business plan is anything but straightforward.

When Tesla CEO and founder Elon Musk unveiled the Part Deux of the Tesla Master Plan, you may remember that Tesla stock took quite a dip. As Morning News USA previously reported, Tesla stock plunged by as much as 3.442 percent, bringing Tesla’s stock price to $220.50.

A recent report from Forbes reveals that analysts are saying that Musk’s grand plan for Tesla is lacking some key financial details. There are also some analysts, including those from Oppenheimer and UBS, who believe that Tesla’s foray into energy market expansion serves as nothing but a mere “distraction” from the company’s automotive business.

Also readElon Musk Master Plan Drags Tesla Motors Stock Down

At the same time, Market Watch reports that investors and analysts are expecting Musk and Tesla to continue with their “cash burn.” According to a report recently emailed to Morning News USA by BuildZoom’s Jack Cookson, the total value for the entire Gigafactory project now stands at $386 million, with the most expensive permit spent for a “Section F Expansion.” This amounted to $22 million.

Aside from this, Tesla had spent $16.2 million for two permits related to the installation of Panasonic tools. The $9.4 million in permits were also spent for seismic anchoring.

Meanwhile, Tesla recently set out to get a permit for a “Nitrogen Yard” and parking expansion. Aside from Gigafactory expenses, Green Car Reports pointed out that Tesla has made updates on its Supercharger network to allow Tesla owners to take advantage of faster charges.

As far as its second quarter performance is concerned, analyst are expecting Tesla to report an adjusted loss of around 54 cents a share, a much wider loss than what the company had reported in the previous year.

For the moment, Tesla stock is slightly up by 0.928 percent to $230.61.

Also readAutopilot Fatal Crash Aftermath: Did Mobileye Just Dump Tesla For BMW?

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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