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Tesla Motors Inc (TSLA) Slumps Again on Fears of Major Capital Shortage

Tesla Motors Inc (NASDAQ:TSLA) has had an unusually rough week in the theater of public opinion. As The Street reported today, Tesla Motors Inc (NASDAQ:TSLA) is taking another big hit on the markets today after they came out on the losing end of yet another tussle with analysts. It’s a decided and unwelcome change of pace for the electric automaker, whose stock has been buoyed for months by glowing positivity concerning its operations and potential.

Tesla Motors Inc (NASDAQ:TSLA)

Bloomberg reported that Goldman Sachs Group Inc (NYSE:GS) recently toured their Fremont facility and met with management, and while they came away firm in the belief that Tesla Motors Inc (NASDAQ:TSLA) will meet their 2014 production goals, they have reservations about their long-term plans.

In particular, they question Tesla Motors Inc (NASDAQ:TSLA)’s ability to scale their operations up to the extent they have planned over the next few years, which includes the development of the Gigafactory. Goldman Sachs Group Inc (NYSE:GS) believes that Tesla Motors Inc (NASDAQ:TSLA) will need at least $6 billion in capital to fund everything, and that is on the low-end of their projections.

Goldman Sachs Group Inc (NYSE:GS) maintained a neutral rating on Tesla Motors Inc (NASDAQ:TSLA) with just a $210 price target, significantly below the stock’s current (though now-shrinking) value. They believe Tesla Motors Inc (NASDAQ:TSLA)’s valuation has absolute perfection baked into it, which is not reasonable.

That latest call follows earlier skepticism this week from multiple other sources, including Morgan Stanley (NYSE:MS), Morningstar, Inc. (NASDAQ:MORN), and Advanced Automotive Batteries. Among other things, there were concerns over Tesla Motors Inc (NASDAQ:TSLA)’s Chinese operations and ability to meet demand there, the viability of the EV market as a whole, the price point of the Model 3, and the impact autonomous vehicles may have on Tesla Motors Inc (NASDAQ:TSLA).

On the other hand, Tesla Motors Inc (NASDAQ:TSLA) did win an important ruling in Massachusetts this week, which could indicate their business model of direct-to-consumer sales will be allowed in other states as well; a necessary condition for keeping their vehicles costs to where they want them.

Tesla Motors Inc (NASDAQ:TSLA) is down 1.83% today in afternoon trading, and 7.54% for the week, shedding $21.05 from its stock price and over $2.5 billion in market cap.

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