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Investors keep the faith on Tesla Motors

Published 11/18/2016, 08:20 AM
Investors keep the faith on Tesla Motors
TSLA
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  • Tesla Motors (NASDAQ:TSLA) cleared a nice hurdle when shareholders overwhemingly approved the company's merger with SolarCity, although major challenges are still ahead.
  • The GOP sweep on November 8 is seen as putting government support for the renewable energy industry at risk. It's also no secret that Tesla has a heavy debt load in front of the Model 3 production ramp up. The SolarCity business is targeted to add $1B to Tesla's revenue in 2017 and $500M in cash over three years. Cost savings of $150M per year are also promised.
  • "I think your faith will be rewarded," CEO Elon Musk told shareholders yesterday.
  • Analysts are divided of course, although it's notable that a few more have upped long-term revenue projections for the energy side of the business.
  • Tesla trades with a market cap of $28.66B, compared to Ford at $47.1B and GM at $50.9B.
  • TSLA +1.24% premarket to $191.00


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