Tesla may not be finished tapping capital markets, UBS warns

Customers look at a Tesla Model S 90D electric vehicle at the company's showroom in Hanam, South Korea.
SeongJoon Cho | Bloomberg | Getty Images

The new capital raised by Tesla may not be enough to alleviate ongoing investor concerns about its cash burn, said UBS, which has a sell rating on the company.

Tesla announced Wednesday that it is looking to raise $1.15 billion before the release of its mass-market Model 3 later this year.

"This is at the low end of the $1-2bn we expected, and could imply another raise later if the Model 3 is delayed," said UBS analyst Colin Langan in a note Thursday.