Skip to main content

The Next Week is Critical for Tesla Inc (TSLA)

By U.S. News & World Report

This week is a big news week for auto investors. Now that General Motors Co. (ticker: GM) and Ford Motor Co. ( F) have reported mixed second-quarter earnings, investors are focusing their attention on Tesla Inc ( TSLA) ahead of its Model 3 media event on Friday and its earnings report on Aug. 2.

Tesla will likely reveal key details about the Model 3 at this week’s event when it delivers its first 30 Model 3 cars to buyers. Investors will be watching for final pricing information and technical specifications for the Model 3, Tesla’s first attempt at a mass-market, long-range electric vehicle. The company originally targeted a $35,000 price.

[See: Car Companies and the Race to Profits.]

The Model 3 launch comes on the heels of an announcement this week that the U.K. is joining France in banning new non-electric car sales starting in 2040. The U.K. hopes to eliminate all petroleum and hybrid vehicles from its roads by 2050.

With Tesla shares up more than 60 percent in 2017 and 1,000 percent in the past five years, investors certainly have high hopes for the Model 3. Wall Street remains polarized on the controversial company, which leapfrogged GM earlier this year to become the largest U.S. auto company by market capitalization.

Robert W. Baird & Co. analyst Ben Kallo says long-term investors should consider any short-term weakness in Tesla stock a buying opportunity.

[See: 10 Ways to Invest in Driverless Cars.]

“We would be buyers on weakness, remain positive on TSLA’s long-term prospects, and think the Model 3’s introduction to the market will take several months and will coincide with positive catalysts, such as vehicle reviews, production updates, and progress toward 20 percent gross margins,” Kallo says in a research note on Wednesday.

UBS analyst Colin Langan is among the Tesla skeptics. Langan says Tesla’s current market valuation prices in “optimistic assumptions,” including annual auto sales in the 2 million range within 10 years, no more than 3 percent annual dilution and a price-earnings ratio of at least 25 in the year 2027.

[Read: Should You Invest in Tesla Stock?]

“We believe the market should not ignore fundamental headwinds that persist with regards to TSLA’s stationary storage business, Model 3 profitability, and eventual need to raise cash,” Langan wrote Wednesday.

Heading into the Model 3 launch event, Baird has an “outperform” rating and $368 price target for Tesla stock, while UBS maintains a “sell” rating and $185 price target.

More from U.S. News

11 of the Best Fixed-Income Funds to Buy

8 Small-Cap ETFs With Big-Time Potential

8 Reasons to Avoid Short Selling Stocks

The Next Week is Critical for Tesla Inc (TSLA) originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Matt Amodio’s ‘Jeopardy’ winning streak ends after 38 consecutive victories

Biden warns another terrorist attack ‘highly likely’ at Kabul Airport; Americans told to stay away

Naomi Osaka ‘refreshed and happy’ as she kicks off her Olympic campaign with dominant victory against Saisai Zheng