Kirkpatrick: Tesla Motors Inc's Real 'Challenge' May Be Raising Capital

Tesla Motors Inc TSLA shares are on a downward trend heading into Wednesday's earnings report. A stock that once traded comfortably above $200 is now stuck in a range where it was almost three years ago, and market sentiment still remains mixed ahead of the results.

On one hand, Tesla's growth potential is enormous, especially with its Model 3 on tap to hit thousands of driveways within the next half-decade. On the other hand, investors have arguably -- paraphrasing Tesla CEO Elon Musk -- overvalued the company's stock price.

Tech expert David Kirkpatrick, CEO of Techonomy, was recently on Bloomberg discussing this issue and his outlook for the tech company.

Referencing Tesla's worsening gross margins -- down five percentage points between the 2014 September quarter and the 2015 equivalent -- the broadcast pointed out "that's a bad thing for a company that's losing money."

But how does Kirkpatrick feel?

"I love Tesla for the degree it has shaken up the entire auto industry," he said, before warning about the company's ability to raise funds in the future.

"When a company's stock drops almost 40 percent in a relatively short time...their ability to raise the capital they need going forward as a massively money losing entity is going to be a challenge."

Tesla's "incredible expenditures" are another reason to worry, he added.

Regarding the Model 3, Kirkpatrick explained it could be a catalyst, but said to watch for any color referencing the car on Wednesday's earnings call.