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Tesla poised to exceed cash generation expectations, says Oppenheimer
Oppenheimer analyst Colin Rusch believes that with Tesla's shares hovering around its March 2019 convertible note conversion price of $359.87, they are poised to break higher exiting 2018 and through the first part of 2019. After a drama-filled fall that concluded with a settlement with SEC and a new board chair, the analyst thinks Tesla is enjoying improving fundamentals based on increasingly efficient manufacturing, strong ASPs leading to better than expected cash flow, as well as slow and disappointing competition entering the market for EV/PHEVs. Further, Rusch believes as Tesla delivers steady cash flow, a new group of investors will begin taking positions, helping drive shares higher. The analyst reiterates an Outperform rating and $418 price target on the shares.
