Mike Blake | Reuters
In an invitation conflict with institutional clients from Morgan Stanley on Wednesday, research analyst Adam Jonas – a long Tesla tyrant – expressed skepticism about the electric car manufacturer and said not to expect a buyer like Apple to bail out the Company.
"Tesla doesn't really look like a growth story," Jonas said on the conversation, as CNBC heard in a recording. Today, "It seems like a worried credit and restructuring story."
Some details of the conversation were previously reported by Business Insider.
Jonas spent some time on the conversation and responded to the hope that a large-tech company like Apple or Amazon could buy Tesla. In a CNBC interview on Tuesday, analyst Craig Irwin of Roth Capital Partners resumed the rumor that Apple had once lived at Tesla.
But Jonas retrieved cold water on the idea of a major technical acquisition today.
He explained: "For risk reduction and limitation of liability, they cannot expose themselves to the unlimited responsibility of being involved in owning a business where occasionally a car comes on fire, takes down a building, or accidentally kills one pedestrians or passages, things happening. The automotive industry has an ugly side to it. The roads are very dangerous. There is a lot of energy stored in a vehicle And the regulatory environment [around autonomous cars] has not had time to cure yet. "
Jonas Recognized that Apple is interested in transportation (such as Amazon and other major technology companies). But Morgan Stanley's technology scientists said he didn't expect Apple to have a service or related hardware devoted to transportation until the 2030s.
He added, "Perhaps the big companies won't put up with it up. And, moreover, they are aware that the autonomous race is more of a marathon, where you over 1
SpaceX for Rescue?
Apart from shooting down the idea of a white knight, Jonas also expressed skepticism about the company's current state.
" At the end of 2018, demand was higher than supply, cash flow was strong, was lots of excitement around model Y, "said Jonas." Today – the offer exceeds demand, they burn money, no one cares about model Y. "
Finally, Jonas told investors that, considering Tesla's acquisition of SolarCity, There is a possibility that Musk could use his 54% stake in SpaceX, a company that has a post-money valuation of $ 31.5 billion, to secure Tesla's final.
"There is a precedent for Elon Musk to Think about his portfolio of companies, "he said.
Jonas said near term, Wall Street expects Tesla to deliver only 70,000 cars in the second quarter of 2019. While he and Morgan Stanley have a more optimistic estimate of 82,000 vehicles, which still missing Tesl a-guide The company said it would deliver 90,000 cars in the quarter and wrote in a quarterly shareholder letter:
"While driving toward higher internal targets, we confirm our earlier guidance of 360,000 to 400,000 vehicle deliveries in 2019, representing an increase of about 45% to 65% compared to 2018. "
Tesla and Morgan Stanley did not respond promptly to summons requests.
Morgan Stanley was a leading guarantor in Tesla's $ 2.7 billion offer for shares and convertible notes that closed earlier this month. In the week of the offer, Morgan Stanley said it saw funding as a 12-month bridge to help the company gain a foothold in China.
Tesla's holdings are down 15% since last year and dropped 6% on Wednesday to under $ 193. The slide started last week after an email was discovered where Tesla CEO Elon Musk urged employees to cut spending and tell them that he would personally monitor outgoing expenses.
This news was followed by a poor Consumer Reports review of Tesla's new Autopilot Navigate feature in model 3 electric sedans. The stock can also respond to ongoing trade tensions between the US and China, as Tesla has slashed the future to build and sell the cars there.
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