Tesla shares got off to the week with a good start after Canaccord Genuity upgraded the stock and predicted a monster rally from here as electric vehicle penetration improves and the company gets closer to building a car that is affordable for the masses.
fell short of Wall Street expectations. The Elon Musk-led company said it would focus on reducing costs in 2019 and also said its cash position improved to $ 3.7 billion.
“We view the recent string of price cuts as further proof that the cost cutting and right sizing that the company has undertaken are resulting in concrete movement towards the ultimate goal of an affordable $ 35,000 Model 3,” added Dorsheimer. “With the strong operating cash flow generation of $ 1.23B and cash on the balance sheet of $ 3.7B, the liquidity concerns and convertible note repayment are no longer valid concerns in our view.”
— With reporting by Michael Bloom.