(Bloomberg) — Wirecard AG won a short reprieve from the lenders on its 1.75 billion euros ($2 billion) revolving credit facility after banks decided to assess the embattled company’s long-term viability before telling it to repay the loan.Advisory firm FTI Consulting is monitoring Wirecard’s compliance with the loan terms as lenders sift through documents and speak with stakeholders including Visa Inc. and Mastercard Inc. to decide how best they can secure the highest repayment, people familiar with the matter said. A standstill agreement is only expected to last a short period before lenders make a final decision, the people said, asking not to be identified discussing the private information.Wirecard earlier this week said that 1.9 billion euros ($2.15 billion) it previously reported as cash on its balance sheet probably doesn’t exist, triggering a collapse in shares and a criminal investigation into how the money went missing. The revelations are rippling across the financial system, with about 15 lenders now grappling with the extent of potential losses. ABN Amro Bank NV, Commerzbank AG and ING Groep NV are among the lead banks among lenders that have given Wirecard about 1.6 billion euros in credit out of the total facility, Bloomberg has reported.Wirecard shares have cratered and ex-Chief Executive Officer Markus Braun surrendered to police after an arrest warrant was issued. He’s since posted bail and is no longer in custody. In an indication of the company’s worsening situation, Moody’s Investors Service withdrew Wirecard’s credit ratings altogether on Monday after cutting it six notches at the end of last week.Bank of China, which is a lender in the group, is considering terminating the loan, Bloomberg has reported.The situation puts enormous pressure on Interim CEO James Freis to reassure Wirecard’s business partners. It has licenses with Mastercard, Visa and JCB International, through which its banking arm issues its credit cards. But time is running out quickly as he seeks to ensure clients end continue their business relationships with the German company.One option that has come up for the banks is swapping debt for equity in the company, one of the people said. Wirecard has also said it’s considering selling parts of the business as one way forward. Wirecard euro bonds maturing in 2024 fell further on Wednesday, to trad at a record low of 21.67 cents on the euro.A spokesman for Wirecard said the company will not be issuing statements about its situation. A representative for FTI declined to comment.(Adds details on bank members in table and on Bank of China’s position in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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"Tech-oriented investors" are driving Tesla Inc.'s (NASDAQ: TSLA) stock price higher without understanding the implications of running a car company, Morgan Stanley analysts said in a note Tuesday, as reported by Forbes.The Tesla AnalystMorgan Stanley's Adam Jones has maintained his previous rating of "underweight" on the company's stock with a price target of $650.The Tesla ThesisJones noted that it is extremely unlikely for Tesla to justify its current stock price within the next decade.Morgan Stanley forecasts Tesla to produce 2 million electric vehicle units annually for the next 10 years. At a stock price of $1,000, the automaker's stock is "discounting roughly 4 million units" by 2030, Jones said, according to Forbes.False Comparison With Tech GiantsTesla's stock is largely being driven by investors who draw a false comparison of the company with established technology companies and ignore the set of risks that come with running a car company, Jones suggested.To be able to draw such a comparison, "one would have to consider (or ignore) significant inherent differences in Tesla's business model and capital intensity," the Morgan Stanley analyst wrote, according to Forbes."One must also take into account many of Tesla's business objectives face a degree of execution risk that may be significantly higher than many of the more proven/mature companies in this analysis."What ElseGLJ Research founder Gordon Johnson similarly suggested on Benzinga's PreMarket Prep show earlier in the day that he was bearish on Tesla's stock.TSLA Price ActionTesla shares closed 0.75% higher at $1,001.78 on Tuesday. The shares traded nearly 0.5% lower in the after-hours session at $997.Latest Ratings for TSLA DateFirmActionFromTo Jun 2020Goldman SachsDowngradesBuyNeutral Jun 2020Morgan StanleyDowngradesEqual-WeightUnderweight Jun 2020WedbushMaintainsNeutral View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from Benzinga * Tesla Shareholders Meeting, 'Battery Day' Moved To September * Bitcoin Scammers Used Elon Musk's Name To Profit M Over Two Months * Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.