Argus Analyst Has Concerns Over Tesla (TSLA)

Argus maintains Hold on Tesla Motors (NASDAQ: TSLA).

Analyst Bill Selesky sees the company posting an operating loss in 2017 and 2018 due, in part, to the Model 3. He is also concerned over the stock offerings.

"We now expect Tesla to post operating losses in both 2017 and 2018, due mainly to additional expenses for the upcoming Model 3 launch. We also remain concerned about the impact of further dilutive stock offerings. Tesla has already completed six secondary offerings since its IPO, and we believe that it could again issue new equity to help cover current costs as well as future debt obligations related to the SolarCity acquisition."

His 2017 EPS estimate goes from a loss of $2.56 to a loss of $5.48 citing increasing costs related to the Model 3 launch which is set for July.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $325.22 yesterday.

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