Tesla shares shares as Musk changes pace with profits

(Reuters) – Shares of Tesla Inc (TSLA.O) fell 11% Thursday, on the verge of losing more than $ 5 billion to the market value of the electric car manufacturer, a day after having disappointed Wall Street by softening his speech by making a profit this year.

Only two Wall Street brokerages have narrowed their current share price target, but a series of disappointing badyst research notes have focused on cutting margins in the Elon Musk-led company , which is striving to find a path to sustainable profitability.

According to forecasts, the second quarter figures after the markets close on Wednesday indicate that the company will still aim to be profitable in the third and fourth quarters, but will focus on volume growth, the increase in production capacity and cash generation.

This contrasted with Musk's promises at the same time last year that the company would be profitable and its cash flow positive "now".

"For Tesla to be more than a niche, one of the biggest challenges will be for Tesla to improve its gross margin profile," wrote a Credit Suisse badyst in a research note.

Wedbush Securities lowered its stock price target from $ 230 to $ 220, because of the softer margin profile.

The stock was down 11.34% to 234.84 USD before opening the opening bell, 3% higher than the median price set by badysts at 227.5 USD.

US166858275 =, which debuted just two years ago, has dropped more than 2 price points in European trading, pushing its yield, which is moving in the opposite direction, above 8% for the first time since July 1st.

The spread of its yield relative to Treasury bonds, a key measure of the additional risk that investors badume in retaining Tesla's speculative-grade debt on safer US government securities, has widened by almost 50 percent. base points.

All in all, this is the biggest loss of this obligation since the beginning of last September, when his chief accountant resigned after only a month of work and Musk was filmed smoking marijuana and brandish his sword on the Internet.

A number of badysts were also concerned about the resignation of JB Straubel, the company's pioneer of electric batteries, pioneer of the company's electric batteries, the company's last remaining guardian left in its highest echelons outside of Musk.

"Straubel has been at the forefront of the company's technology leadership, which we believe will be increasingly challenged as the competition recovers," said Cowen badysts.