Elon Musk, who is leading one of the top startups in the silicon valley, might be in trouble according to some analysts because they have recently predicted a lousy situation for Tesla Inc. Tesla Inc., which was going to offer its new shares and bonds to investors have decided to buy back from that decision because of company’s bad performance on wall street from last few days. Accordingly, shares of Tesla went down by more than twenty percent from previous ten days, and it’s creating many problems for company.
Now analysts are predicting a red code situation for the company because they think it will be hard for Musk to pull out of his condition. Tesla was supposed to raise more amount of funding from investors by offering new stocks to them, but since prices of shares have rapidly gone down, the company has decided to pivot from that decision. Analysts are changing their prediction and target for Tesla stock prices, which is creating a situation of panic among its investors. For the first time since December 2016 shares of Tesla has fallen by more than 7.5% and broke the limit of $200. Tesla managed to sell 63000 cars in the first quarter and they expecting company would be able to sell in between 360000-400000 this year.
However, after looking at Tesla’s production results and selling performances, it seems like they won’t be able to achieve that target. Some are even predicting that the condition of Tesla is so much worse that they will be running out of cash in the next ten months if they don’t increase their production capacity. Tesla’s raising debt is also another concern, and the company would have to pay that amount in new few years. Elon Musk has already discussed this dire situation of the company with its employees, but it will be interesting to see how’s he going to manage it this time.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.