ISI says TSLA is not exposed to global emissions standards, which the firm sees as the single largest threat to automotive returns; while conventional OEMs face headwinds of ~$1,350/unit, TSLA's costs will come down with technology advances and scale, the analysts say.
TSLA’s volumes are frequently compared to other electric vehicle sales, but the global market opportunity for TSLA is far greater, ISI says, suggesting 500K units by 2020 is achievable.
Of all TSLA milestones so far, few are as important as the company’s progress in China, the firm says, adding "it is difficult to foresee an OEM better placed than Tesla to assist the government in meeting its goals."
Toyota (NYSE:TM) is reconsidering a move to open a new compact car assembly plant in Mexico after company President Akio Toyoda told planners searching for a site to pause and review its rationale, Reuters reports.
Momentum is said to have been building for a decision this summer on the expansion, with the aim of starting Corolla production in Mexico in a few years, but Toyoda apparently then asked the team to "re-review" the project by year’s end.
TM already has a pickup truck plant in the Mexican state of Baja California, capable of producing 63K Tacoma vehicles a year, but does not have any capacity for passenger cars.
Stifel Nicolaus sees upside for Delta Air Lines (DAL -0.8%) based on "big picture" themes.
Though concerns over international capacity have lingered, the investment firm points to strong pricing fundamentals in the domestic market and the ongoing benefits of industry consolidation in backing Delta.
Disney Infinity (NYSE:DIS) hired four unknown video game enthusiasts to design intricate levels for the Toy Box gaming mode of the new version of Disney Infinity.
The new staffers were identified through open design competitions.
What to watch: After Disney Infinity 1.0 raked in over $500M in retail sales, the company is looking for an bigger haul from Infinity 2.0 which features Marvel superhero characters. Stepping up to more intriguing levels (think Minecraft) is part of the plan to get more buzz for the gaming system.