Tesla Inc (TSLA)

[clobal]

Yeh..thats the ticket...

keep giving elon monopoly money.

Jefferies predict a per-share loss for Tesla through 2019, a year more than other analysts

Analysts at Jefferies joined the Tesla Inc. bears on Tuesday, with a note that predicts the Silicon Valley car maker will lose money at least through 2019.

Tesla (TSLA) won't achieve the 30% to 35% margins it'd need for "attractive returns," and it is likely to be a money-losing proposition at least until 2020, one year past what other analysts have predicted, the Jefferies analysts said in a note.

Tesla's product mix is declining faster than battery size and cost, its battery manufacturing is set to be "at best a low-margin business given price deflation and material cost inflation," and depreciation is catching up quickly, the analysts said.

The Jefferies analysts forecast Tesla to end 2019 losing $3.26 a share. In contrast, Wall Street forecasts Tesla will report GAAP earnings of $5.33 a share and adjusted earnings of $2.59 a share in 2019, according to FactSet.

See also: Tesla's electric semi truck is a 'beast,' Elon Musk says (http://www.marketwatch.com/story/teslas-electric-semi-truck-is-a-beast-elon-musk-says-2017-09-14)

"We find consensus too optimistic about depreciation, (general and administrative expenses) compression matching the levels of disintegrated auto OEMs, interest expense and Tesla's ability to wean the market off Resale Value Guarantees," they said. "Tesla may, however, generate cash before earnings given the structure of leasing earnings and deferred revenue accounting."

Moreover, given Tesla's capital intensity, discounted cash flow does not justify the stock's current valuation, "let alone upside," they said. They set their price target on the shares at $280.

The average price target on Tesla hovers around $306, and most analysts hold the stock at neutral, according to FactSet.

Shares of Tesla fell more than 2% on Tuesday, but have beat the broader index so far this year and in the past 12 months. The stock has gained 82% in the last 12 months and 76% in 2017, compared with gains of 17% and 12% for the S&P 500 index.