Morgan Stanley says Tesla doesn’t foresee need for more capital
Despite a year plagued by controversies that Elon Musk wasn’t sure Tesla could survive, officials at the electric-car maker reiterated this week that there won’t be a need for another capital raise, according to a note from Morgan Stanley.
“Tesla believes it has achieved a state of self-funding without the need for external capital to run the business or to address near term debt maturities,” the private equity firm wrote.
Morgan Stanley associates met with Tesla’s head of international relations, Martin Viecha, at the Annual Nasdaq Investor Conference in London this week, during which Viecha said Tesla is on track to meet its Model 3 production goal, 1,000 vehicles per day, by next year.
Last week, Electrek reported that Tesla is producing 1,000 of its flagship sedans a day, although Viecha declined to comment. Tesla has ramped up production over the course of the year of the Model 3 -- the price of which has declined steadily from the third quarter -- investing significant resources to try to meet consumer demands.
Viecha also suggested that Tesla won’t unveil its Model Y, a crossover all-electric vehicle that will have similar features to the Model 3, in 2019.
“While Martin did not rule out an unveil in 2019 he suggested it may be better to unveil the product a few months before start of production implying a potentially later reveal than some investors expect,” Morgan Stanley wrote.