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Musk
sketched out a plan on Wednesday for an integrated carbon-free
energy enterprise offering a wider range of vehicles, including
a commercial truck and a public bus, as well as products and
services beyond electric cars and batteries.
"The plan is like before – or like much of what Tesla does –
long on exciting visions of the future and short on financial
details," Barclays Capital analyst Brian Johnson said in a note
to clients.
Tesla shares were nearly flat at $229.20 in premarket trading on
Thursday. They have risen 5 percent since July 8, after Musk
said he was working on a second master plan.
In a blog post titled "Master Plan, Part Deux", Musk also
restated his argument that Tesla should acquire solar panel
installer SolarCity Corp <SCTY.O>. Both Tesla and SolarCity are
burning through cash.
"At a high level the document is aimed at explaining how
(Tesla's) actions fit into a "larger picture" of accelerating
the advent of sustainable energy," said Deutsche Bank analyst
Rod Lache, who rates Tesla a "hold".
"The document is relatively short on details, and it does not
contain any economic or financial objectives," he said adding
that these details would be needed when the company needed to
raise funds.
In May, Tesla sold about $1.7 billion in new shares to fund its
projects, particularly to accelerate the development of its new
Model 3 car lineup and reach a production pace of 500,000
vehicles a year by 2018.
Musk's original strategy from 2006 included a plan to build a
sports car, use the profits from that to build an affordable car
and then a more affordable car, along with providing sustainable
energy products. (http://bit.ly/2aehkN8)
In delivering on its original master plan, Tesla "...has dug a
$4.2 billion hole on the financial side that has necessitated a
series of fund raises totaling $6.2 billion," Barclays' Johnson
noted. He rates Tesla "underweight" and has a $165 price target
on the stock.
"It's beyond us how much fundraising Tesla will need to carry
out this master plan."
(Reporting by Tenzin Pema in Bengaluru; Editing by Sayantani
Ghosh and Savio D'Souza)
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