Homepage / Technology / Tesla could burn more than $1 billion per quarter from weak Model 3 margins, Toni Sacconaghi says
Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software?

Technology

Tesla could burn more than $1 billion per quarter from weak Model 3 margins, Toni Sacconaghi says

The pressure is on for Tesla’s Model 3.

If Tesla’s latest model fails to produce margins, the popular automaker could potentially be spending more than $1 billion a quarter, said an analyst.

“[Tesla has] a billion dollars of capital spending per quarter. So they could be burning through more than a billion dollars per quarter over the next couple of quarters,” Toni Sacconaghi, a senior technology research analyst with AB Bernstein, said on Thursday.

“That’s why there’s real sensitivity to what the margins are on the Model 3. If they are weak, they are going to be burning through more. If they are better, then the cash burn may be about that [billion-dollar] level,” Sacconaghi told CNBC’s “Power Lunch.”

Analysts aren’t expecting the automaker to make a profit for the next two quarters, said Sacconaghi, while the Tesla bulls vs. Tesla bears debate intensifies.

“I think this story is all about, can Tesla build in volume the Model 3, do so profitably and do so at a good and high-quality level? It’s really all about execution,” Sacconaghi said.

If the automaker can push through “manufacturing hell” and meet its gross margin targets, the stock will “do well from here,” said Sacconaghi. However, Tesla bulls are questioning whether those targets are realistic.

“Manufacturing is going to go up fivefold, and Tesla is striving to achieve margins on the Model 3 of 25 percent [in 2018],” Sacconaghi said. “They’ve struggled to achieve that margin level on the Model X, which has an average selling price of over $100,000. The Model 3 starts at $35,000.”

Tesla bulls fear that a miss on margins could lead Tesla to potentially run out of cash.

“The bull/bear debate on the stock is highly polarized,” Sacconaghi said. “The bears would say [Tesla is] spending $2 billion in capex (capital expenditures), and if they can’t get margins on this product they’re going to drain cash and they may run out of cash.”

The company expects that the Model 3 should deliver positive gross margins in the fourth quarter, according to a letter to shareholders.

Tesla surged 6 percent after posting a narrower-than-expected loss for its second quarter, leading Tesla bears to lose more than half a billion dollars Thursday. The automaker’s stock is up more than 62 percent year to date.

Source: Tech CNBC
Tesla could burn more than billion per quarter from weak Model 3 margins, Toni Sacconaghi says

Comments are closed.