Tesla August deliveries badly describe: an analyst valuing $ 0

• One of Tesla's most bearish analysts is doubling its valuation of $ 0 as a result of InsideEV's latest delivery estimate for the company.
• "This story is clearly over," said Ed McCabe, of Highbridge Capital Management, about those who say Tesla is a growing company that justifies losses and slowing growth.
• Tesla shares have fallen 38% since their last peak in December 2018. Follow the actions here.
• Visit the Business Insider home page for more stories.

According to estimates of Tesla's deliveries for the month of August, the company's most bearish analysts, Wall Street, are at the edge of their head office as the end of the quarter approaches.

For Ed McCabe, Head of Equity Operations at Highbridge Capital Management, InsideEV's estimates of August numbers – showing a further decline in Model 3 sales – have shown that "organic demand is extremely low ", he said in a report released Thursday.

"Although there is no reasonable justification for a structurally unprofitable and terribly managed company to have a market capitalization of $ 40 billion, the stock's supporters tout its growth." ", did he declare. "This story is clearly over."

Ed McCabe

At its latest quarterly update, Tesla reaffirmed its forecast of 360,000 to 400,000 shipments worldwide for the full year of 2019. In the middle of the year, total sales were about 158,000, about half of the bottom of this range.

However, McCabe says that even if Tesla achieves these goals, it will probably not help the balance sheet.

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"To reach the bottom of the forecast scale, Tesla has to make an average of 103,000 deliveries in the last two quarters of the year," he said. "To reach the high end, it must reach an average of $ 123,000.The two would exceed the record of the second quarter of Tesla.No will happen.This does not matter either. is structurally unprofitable, the more cars are sold, the more it loses. "

Now that competition is imminent – like Porsche's new Taycan Electric Turbo – things could get worse, says McCabe.

"Do not forget that the losses and cash consumption were huge while Tesla held the electric vehicle market essentially and that Musk repeatedly promised profits and a generation of sustainable and sustainable cash flows," he said. he declared.

"Consecutive quarters of negative revenue growth, growing losses and liquidity consumption will clearly show even the most ardent believers that Tesla is not a viable business."