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Tesla isn’t spending enough money — and investors should be worried (TSLA)

May 3, 2018

After a bizarre of a first-quarter earnings call on Wednesday night, the analysts who cover Tesla’s stock are starting to pump out reactions.

Nomura’s Romit Shah, a bull with a $420 price target and a buy rating on shares, expressed concern about CEO Elon Musk’s borderline unhinged behavior on the call, but then in a research note to clients highlighted Tesla’s lower capital spend for the quarter.

The carmaker went through about $650 million, versus expectations of over $850 million, Shah wrote. The company now has about $2.7 billion in cash in hand and reduced its expected spend for 2018 to $3 billion from $3.4, while also stressing that it won’t need to raise any new funding.

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