Th manufacturing, and execution risk is elevated,” Spak wrote. “For the investor with long-term horizons, the ramp is less of a concern. For others, expect a choppy ride with sentiment a large driving factor.”
To help accelerate the production ramp, Tesla raised $1.4 billion in capital in a secondary offering, adding to the $1.44 billion in cash and equivalents on the balance sheet as of March 31. Spak forecast a Tesla cash burn of about $1.8 billion this year and $1.3 billion in 2017. By 2018, he estimates, Tesla will have used up its cash supply, suggesting additional capital raises are likely needed.
“For now we put another $1 billion equity raise in 2017,” Spak wrote.