Tesla (TSLA) Semi Truck and Roadster 'Just Adds to Musk's Shopping List of Things to Spend Money On' - Cowen
Cowen analyst Jeffrey Osborne weighed in on Tesla Motors (NASDAQ: TSLA) after the company unveiled the Telsa Semi and a new Roadster. Osborne said the reveal offers little to ease investor concerns.
"Tesla's glitzy reveal of the Semi truck was impressive, but didn't answer many questions we had heading into the event," Osborne states.
"While the truck reveal was impressive and the 500 mile range was a surprise, basics such as cost of the truck, where it will be serviced and how much a network of solar powered battery backup based "mega-chargers" will cost were not offered," he added. "In essence, all last night's event did was add to Elon Musk's shopping list of things he needs to spend money on at a time when the company is having difficulty making its base vehicle (Model 3) and its equity and debt has traded off."
They estimate that cumulative capex announcements from the company are now exceeding $15-20 billion over the next few years.
Meanwhile, the Roadster 2.0 Reveal "stole the show," according to the analyst. "We see this vehicle as a high margin offering from the company assuming that by 2020 Tesla can continue to drive down battery costs given the Roadster 2.0 will have a 200kWh battery pack to enable the impressive performance and range," he commented.
The firm is making no changes to their model and maintained an Underperform rating and price target of $170 .
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $312.50 yesterday.