According to latest updates from experts, Tesla’s stocks could experience an abrupt fall of 30 percent or even more, in the coming 12 months. A major reason according to sources, could be the failure of the electric car-maker to have a turnover next year accompanied by the necessity of accumulating fresh capital.
The UBS group has forewarned Tesla’s fall of shares just before Tesla divulged its current quarterly outcome. Colin Langan, a director at UBS says Tesla will fail to meet the standards of Wall Street.
On Sunday an investigation message was communicated that confirmed Langan’s advice to sell of Tesla’s shares. He also made public a target that Tesla can reach, which is 195 dollars per share in 12 months. This then results in a sharp drop of around 33 percent from its earlier value of 288.81 dollars on Monday.
Tesla’s supposed loss for the second quarter amounts to 3 dollars per share, as opposed to the erstwhile evaluation for a loss of 1.71 dollars. Taking these information into account, and as Langan says, Wall street analysts, in unison, vouch for a quarterly loss of 2.76 dollars per share.
Langan in his repost also says that it’s likely for Tesla to raise capital in the fourth quarter. Also, Tesla has to pay back a heavy debt of 500 million dollars by the end of 2018 and also has about 750 million dollars payable in debit, primarily owing to the setting up of its Gigafactory in China.
The question remains though, that in spite of predictions made by Langan, why is there news of Tesla’s stocks losing a third of its value in the upcoming year?
Tesla’s shareowners though have denied such events and have said that these are a part of challenges that one has to deal with, in finance.