Tesla May Snap 5-Day Losing Streak as Macquarie Joins Bulls

(Bloomberg) -- Tesla is poised to break a five-day losing streak that shaved $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.

• Tesla’s zero emissions vehicle credits, which could bring in an estimated $500 million to $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 $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
• The stock rose 1.5 percent in pre-market trading in New York Tuesday; the stock hasn’t closed higher since Oct. 1, after the company and CEO Elon Musk reached settlements with the SEC
• Tesla has 10 buys, 12 holds, 13 sells, average price target $296.42, according to data compiled by Bloomberg

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net

To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Steven Fromm

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