- Tesla (NASDAQ:TSLA) will continue to burn through lots of cash in its quest to become a bigger car maker, and Wall Street may be underestimating how much spending remains ahead, according to analysts at Barclays.
- TSLA does not boast a strong track record in spending efficiently, and its business strategy will keep it a capital intensive company, the analysts say, estimating the company will burn through $11B in capital spending over the next five years.
- If TSLA does not become more efficient in making its planned Model 3 mass market car, it could run out of money to invest enough on the software side, which are the products that make TSLA “truly differentiated," the firm says.
- Barclays is among the biggest TSLA skeptics, and keeps its Sell rating on the stock with a $180 price target.