TELETRADER News
2/14, 6:20 AM (Source: TeleTrader)
more TeleTrader news

Tesla+0.74%

273.20
Chart for: Tesla, Inc.

Morgan Stanley: Tesla to burn up to $1B in Q1

Tesla Inc. is expected to burn around $600 million or even up to $1 billion in cash in its first fiscal quarter, Morgan Stanley's analyst Adam Jonas told CNBC. He added that some of Tesla's more ambitious projects could use external funding, stating the electric car company "is not quite out of the woods yet."

"We think that Tesla is fundamentally overvalued but strategically undervalued. The mixture of those two things leaves a stock that is slightly overvalued," Jonas said. He added a partnership between Tesla and another tech company "could go a long way" and "provide greater resiliency." Jonas warned that startups such as Rivian could pose a "serious threat" considering its possible cooperation with Amazon and GM.

Breaking the News / DJ