's upcoming capital raise was"badly needed" but too small to cover future costs.
Jeffrey Osborne, an analyst at Cowen, cut his price target for Tesla from $160 to $150 in a note sent to investors on Friday. "We update our model to reflect the up to $2.7bn capital raise, which was badly needed but do not see this as sufficient to fund capex, pay off debt, and offset the cash burn that is playing out with lower than planned volume and margins on the Model 3," Osborne said.Tesla's stock reclaims a key level after the electric-car maker ups the size of its capital raise
The electric-car maker will offer 3.1 million shares of its stock and $1.6 billion worth of convertible notes, it said in new regulatory filings. Tesla had previously planned to offer 2.72 million shares and $1.35 billion worth of convertible notes.