When Tesla Inc. posts third-quarter results on Wednesday, CEO Elon Musk may show off a long-promised quarterly profit, as production of his Model 3 electric sedan takes off. But the real question is whether any such gains will be sustainable.
Shares of Tesla Inc. dived 13 percent in early trading on Friday as Wall Street worried a lawsuit from U.S. regulators could force CEO Elon Musk to step down and make it difficult for the loss-making carmaker to raise more capital.
Brokerage Morgan Stanley has suspended equity coverage on Tesla Inc., hinting that the U.S. bank may be doing business directly with the company as it explores options to go private, pushing the electric carmaker’s shares up as much as 5 percent on Tuesday.
Tesla Inc. shares fell nearly 4 percent on Monday as a $113 cut in JPMorgan Chase’s price target for the electric carmaker added to growing doubts among market players about a plan to take the company private.
Tesla Inc. CEO Elon Musk tweeted on Monday that he was working with buyout firm Silver Lake and investment bank Goldman Sachs Group Inc. as financial advisers on his plan to take the U.S. electric car maker private.
The amount investors must pay to insure their debt holdings in Tesla Inc. against declining credit quality rose last week to its second-highest price ever, implying the company is at a greater risk of default following a report that sparked concern that Tesla may need to raise funds.
