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Tesla Shares Take Breather But Future is Green

Stocks in this article: TSLA F GM

Not only is Tesla paying off its Department of Energy loan ($465 million), but it allows Tesla to continue to invest in its business and gives the company some financial breathing room. Jonas believes Tesla will end the second quarter with around $211 million in net cash, and $871 million in gross cash.

"Tesla's gross liquidity should now be equal to around 4 full years of capex," the analyst wrote.

Tesla is smart to take advantage of the incredible run-up in its stock. Musk may be even smarter (heck, the guy is in part responsible for SpaceX, Tesla, and PayPal) as he's buying here, not selling. One would expect that Musk would cash out some of his newfound fortune, but Musk is showing even more confidence, and that's resonating with shareholders.

With the enormous capital raise, it could allow for Tesla's momentum to strengthen, if that can be believed. The company could accelerate its Supercharger station rollout plan, and start production on the third-generation product, which would gain Tesla mass market appeal, even more than it already has.

"Looking further ahead, if Tesla's efforts to pioneer a national charging infrastructure are successful, the company should be in position to help set standards for battery and charging infrastructure commonality across the industry, with potential licensing revenue streams currently not in our model," Jonas wrote in his note. There's been a lot of speculation on the Supercharger network since Musk tweeted earlier this month that there's a way to charge the car faster than there is to fill a tank of gas.

Musk tweeted that a Supercharger announcement would come next week.

Tesla is maximizing its press beyond anything in recent memory, and Musk has dropped hints there is even more in store for the electric car company. It's been a wild ride for Tesla, and the only thing making noise is the crying from the shorts.

-- Written by Chris Ciaccia in San Francisco

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