Tesla broke a five-day losing streak on Tuesday that shaved US$10 billion from its valuation after Macquarie started coverage with a buy-equivalent rating, saying the company is on track to reach profitability and has enough debt levers to clear upcoming maturity events, analyst Maynard Um wrote in a note.
The company's Nasdaq-listed shares (TSLA.O) climbed US$12.24 - or 4.89 per cent - higher to close at US$262.80.
-Tesla’s zero emissions vehicle credits, which could bring in an estimated US$500 million to US$600 million in the second half of the year, as well as growing Model 3 sales, access to debt facilities and potential credit amendments can all help the company get past its debt maturity hurdles
-Notes that’s particularly true if the stock reaches US$360 per share by March
-Macquarie says a capital raise “would be beneficial in further strengthening its longer-term outlook” and provide a cushion in case of economic softening
-Nearer term, Macquarie sees Tesla on track to reach its production targets and achieve profitability in the second half
-Tesla has 10 buys, 12 holds, 13 sells, average price target US$296.42, according to data compiled by Bloomberg
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