An analyst who thinks Tesla is worth $0 sees even more bad news in August's delivery numbers
Kim Kyung Hoon/Reuters
Kim Kyung Hoon/Reuters
- One of Tesla's most bearish analysts is doubling down on his $0 valuation in the wake of InsideEV's latest delivery estimate for the company.
- "That story is clearly over," Ed McCabe of Highbridge Capital Management said of those who say Tesla is a growth company to justify losses and slowing growth.
- Shares of Tesla have fallen 38% since their most recent high in December 2018. Follow the stock here.
- Visit Business Insider's homepage for more stories.
Tesla's estimated deliveries for the month of August have the company's most bearish of Wall Street analysts on the edge of their seat as the end of the quarter approaches.For Ed McCabe, head of equity trading at Highbridge Capital Management, InsideEV's estimates for August's numbers - showing another decline in Model 3 sales - proved that "organic demand is extremely weak," he said in a report Thursday.Advertisement
"While there is no reasonable justification for a structurally unprofitable and horribly managed company to enjoy a $40 billion market cap, proponents of the stock tout its growth," he said. "That story is clearly over."
However, McCabe says that even if Tesla hits these goals - it likely won't help the balance sheet.like Porsche's new electric Taycan Turbo - things could get even worse, McCabe says.Advertisement
"Remember that the staggering losses and cash burn have occurred while Tesla has had the electric vehicle market essentially to itself and Musk has promised imminent and sustainable profits and cash flow generation multiple times," he said.
"Back-to-back quarters of negative revenue growth, increasing losses, and cash burn will make plain to even the most ardent believers that Tesla is not a viable business."Get the latest Tesla stock price here.Advertisement
NOW WATCH: Why bidets haven't caught on in the US
- Microsoft acquires exclusive license for Elon Musk’s largest GPT-3 AI language model
- Mumbai suburbs witnessed over 280 mm rain in 24 hours, says IMD
- Apple’s exclusive online store in now live in India
- INTERVIEW: CAMS CEO says they are actively hiring through the pandemic
- Top stock movers — RIL, TCS, Sterling and Wilson Solar, Tata Steel, Airtel, Vodafone Idea and more