Tesla News: Will Elon Musk's Car Company Turn A Second-Half Profit In 2019?

Tesla (TSLA) has expressed confidence that it can turn a profit in the second half of the year but financial analysts remain skeptical.

"Ultimately, I have a better chance of playing for the [Toronto] Raptors than [Tesla] hitting that profitability target second half," Dan Ives, an equity analyst at Wedbush Capital Markets Group, told Yahoo Finance.

He added that Tesla faces an "uphill battle."

Tesla CEO Elon Musk has warned the company's employees in an email obtained by Reuters in May that the company will run out of cash in 10 months unless "hardcore" cost-cutting measures are taken. The revelation of that email caused investors in Tesla stock to panic and caused shares to reach near-30 month lows. So far this year, Tesla stock is down 40% and the company failed to turn a profit in the first quarter of the year.

Tesla has also faced numerous other problems in 2019. In January, the company laid off 7% of its employees as it closed down its dealerships and moved to an online-sales model. Multiple high-level employees such as its CFO and vice president of global recruiting left their positions. Other issues include China blocking sales of the Model 3 temporarily due to "vehicle irregularities" and investigations into fatal crashes involving Tesla vehicles.

Ives, however, has provided a positive outlook for Tesla.

"I think 9-12 months out, they'll be a healthier company. They potentially could have to raise another $1 to $2 billion in capital," he said.

Tesla is known for incorporating new technology into its automobiles. The Tesla Model 3 was No.1 in worldwide electric car sales in 2018 and self-driving technology will soon be incorporated into the model.