What's Tesla's next step after early backers lost confidence?

2019-05-17 11:45:24 GMT (

Tesla's steep drop in equity suggests that the company's Wall Street investors have lost confidence in its capabilities.


The Wall Street Journal reported on Thursday morning that T. Rowe Price Group, one of Tesla's biggest investors, sold 81% of its stake in Tesla in the first quarter, which led the company's stocks TSLA to sharply drop to 52-week low, as investors follow the actions of big investors.


TSLA shares are heavily overpriced and this is largely due to the great marketing skills possessed by the company, but any cautious investor listens to what others say about the company and not what the company says about itself.


Bearing in mind that Tesla has worked to increase its capital lately, which reached $2.7 billion, but this did not positively affect the company. The question that presents itself here: Is there another negative factor that affects the company ?? Yes, sure!


The answer to our question is sustainability. Elon Musk's ability to raise capital in the face of negative cash flow is impressive for any investor, but this new capital only replaces the capital loss, not for the financing of innovation as promoted by Elon Musk.


Tesla lacks competitiveness specifically with global automakers, but more importantly, it lacks the capital to become a global automaker.

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