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Tesla burning through cash, stock rating takes hit

There's been a lot of talk of Tesla's stock in the past few months, most of it positive. There was that period of a few days where it may or may not have been worth more than General Motors, for example. The announcement of an electric semi truck bumped things up even more. That positive movement may be coming to an end, as Automotive News reports a key analyst from Morgan Stanley increased his estimate for Tesla's cash burning.

Although shares may be worth more than $300 - up 52 percent in 2017 alone - the company is spending a lot of cash. Adam Jonas, the top auto analyst for Morgan Stanley, believes Tesla will spend more than $3.1 billion this year. After this announcement on Monday, Tesla stock closed 2.75-percent down. Like many have been saying, it may be an indication that the automaker has been overvalued.

The real concern is the Tesla Model 3 launch later this year. While the volume model is sure to help the company in the long run, a Bloomberg Intelligence analyst said Tesla may need to "raise more capital to pull off a 2017 launch of the mass-market Model 3 and to fund battery, solar and other investments." Additionally, Jonas believes competitors from more established companies like Alphabet Inc. and Apple will start bringing out competing products and services that encroach on Tesla's current and future plans.

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