Yesterday, 9:12 AM
- The city of Vaasa, Finland says it's prepping a bid to be the location for Tesla Motors' (NASDAQ:TSLA) European Gigafactory.
- Vaasa is situated close to the largest lithium deposits in Europe and is already an energy technology hub.
- "Vaasa has the perfect qualifications to work as Tesla’s partner, and to be the optimal location of the Gigafactory in Europe", says Mayor Tomas Häyry.
- A detail plan description is expected to be released in Q1 of 2017.
Sat, Dec. 3, 11:33 AM
- Electric vehicles are forecast to cut into oil demand by 1M-2M bbl/day by 2035, according to oil industry consultant Wood McKenzie.
- That estimate is actually much more conservative than Bloomberg New Energy Finance’s estimate for EVs to impact demand by 8M bbl/day by 2035. For perspective, OPEC agreed this week to coordinated production cuts of 1.2M bbl/day which swung crude oil prices wildly. EVs are only sipping up the equivalent of 50K bbl/day currently.
- The general consensus even in the oil industry is that governments are moving toward major changes with pollution and emissions regulations. Just this week, the cities of Paris, Mexico City, Madrid and Athens all said they would ban the use of diesel vehicles by 2025. Beijing is also slowly adopting pro-EV policies.
- A higher mix of EVs in the future has already been tipped off by the dramatic long-term electrification initiatives announced this year by companies such as BMW (OTCPK:BMWYY), Volkswagen (OTCPK:VLKAY), Ford (NYSE:F) and Toyota (NYSE:TM). Around the corner, Tesla Motors (NASDAQ:TSLA) and General Motors (NYSE:GM) have their mass model EVs ready to roll - while new EV trucks, buses and motorcycles are also on the way.
- WTI crude oil futures +1.21% to $51.68/bbl on Friday. Brent crude +0.96% to $54.46/bbl.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, SZO, OLEM, OILK, OILX.
Fri, Dec. 2, 11:40 AM
- Cowen defends its Street-low price target of $155 on Tesla Motors (TSLA -0.4%) in a fresh note to clients.
- "We see the company’s 500K vehicle target by ’18 as very ambitious in light of the prior production ramps and delays of the Model S/ X."
- "Tesla’s Gigafactory is also vital to hitting cash flow positive. If battery pack prices remain at ~$200+/kWh vs. targeted ~$100/kWh, we don’t see a path to 20% GM for the Model 3. The Model 3 launch will coincide with a different form factor of Li-ion batteries from Panasonic not used in S/X (2170 vs. 18650)."
- "The SolarCity acquisition only serves to further complicate the story as they rein in customer acquisition costs and adjust to customers’ preference for owning solar systems vs. leasing/PPAs."
- "Other OEMs have a bevy of new EVs hitting the market in the next 1-3 years squarely aimed at competing with Tesla."
- If Cowen is the standout bear in the crowd, Dougherty & Co. is the opposite with its standing $500 PT. Earlier this year, the firm said Tesla is solving a different set of equations than the rest of the industry as the disruption story builds.
- Shares of Tesla are down 6.4% since the U.S. election.
Thu, Dec. 1, 10:06 AM
- SolarCity (NASDAQ:SCTY) is expanding into Florida's residential market after voters last month rejected a utility-backed ballot measure that critics said would make going solar more expensive.
- "Though the Sunshine State doesn’t get quite as much sun as the southwestern U.S., it consistently ranks among the nation's ten sunniest states (the Orlando area, where we’re initially launching service, enjoys more than 230 sunny days each year)."
- CEO Lyndon Rive told the Orlando Business Journal the move would "eventually lead to 200 to 300 jobs based on the demand."
Wed, Nov. 30, 5:57 PM
- Tesla (NASDAQ:TSLA) is now eligible to operate its own stores in Richmond, Va., the Virginia Department of Motor Vehicles commissioner rules.
- The decision is viewed as an important win for TSLA as the company tries to expand sales locations ahead of the introduction next year of a lower-priced Model 3 sedan.
- Opponents could appeal in court, and TSLA still must obtain a license from Virginia's Motor Vehicle Dealer Board.
- States have dealer-franchise laws protecting independent retailers from competition from manufacturer-run stores, but TSLA has won approval to sell direct in many states, including California.
Tue, Nov. 29, 1:03 PM
- A charging network is being created in Europe through a group effort that includes BMW (OTCPK:BMWYY), Daimler (OTCPK:DDAIF), Ford (F +0.4%) and Volkswagen (OTCPK:VLKAY) brands Audi and Porsche.
- The group sees an "ultra-fast high-powered" charging network along major highways with power levels up to 350 kW.
- The initial build-up is planned to start next year with 400 sites across Europe. By 2020, thousands of high-powered charging points are expected.
- Stanphyl Capital's Mark Spiegel points out that the planned network is at 2X the speed of Tesla's superchargers. It's the same Spiegel who Bloomberg reports is discussing Tesla (TSLA -2.2%) as a short idea at the Robin Hood conference in NYC.
Tue, Nov. 29, 11:52 AM
- Elaine Chao is the pick of Donald Trump to be the Secretary of Transportation, according to numerous media outlets.
- Chao served in the cabinets of Bush 41 and Bush 43. Early analysis is that she may be a known quantiy to the Detroit Three (GM, F, FCAU) who worked closely with her on a post-9/11 task force and broadly during the Bush years.
- The big picture: There's been some concern over the impact of the Trump administration for EV sellers such as Tesla Motors (TSLA -1.9%), Nissan (OTCPK:NSANY) and Toyota (TM +0.7%) -- although the $7.5K federal tax break is already set to expire when automakers cross over the 200K U.S. EV sale mark. Federal fuel efficiency targets could be rolled back after Trump takes office, although some industry watchers think manufacturers are too far along in their EV, ridesharing and mobility projects to put the genie back in the bottle.
Tue, Nov. 29, 8:28 AM
- Dutch Economy Minister Henk Kamp tells the Dutch parliament in a letter that the nation is looking to attract Tesla Motors (NASDAQ:TSLA) to build a plant for local EV production.
- Previous reports indicated that Tesla was also considering setting up a plant in Portugal.
- Source: Bloomberg
- Shares of Tesla are up 0.18% premarket to $196.48.
Mon, Nov. 28, 6:25 PM
- Tesla Motors (NASDAQ:TSLA) has come under fire from the SEC for using prohibited accounting metrics and sharing the information with investors, Dow Jones reports, citing regulatory correspondence.
- The SEC says TSLA in its August earnings release used “individually tailored” measurements when the company added back certain costs to revenue calculated under GAAP, although the agency judged the matter resolved without further action.
- The SEC used the word “tailored” to describe revenue adjustments that were specifically prohibited in its May update on regulatory guidelines; "it's very strong language," says a VP of research at Audit Analytics.
- TSLA also was criticized for its slow response to new guidance on the use of non-GAAP figures and for failing to make a “substantive” case for providing non-GAAP figures to investors.
Fri, Nov. 25, 9:46 AM
- U.S. automobile sales are expected to increase 4.2% to a record 1.37M units in November, according to a forecast from Kelley Blue Book. The previous high for the month was 1.32M units.
- This November includes two extra selling days than last year which provides an obvious boost. A high level of promotions around the Black Friday weekend is also seen as a sales driver.
- KBB's forecast by automaker: General Motors (NYSE:GM) +8.6% to 249K, Toyota (NYSE:TM) +2.9% to 195K, Ford (NYSE:F) +0.1% to 187K, Fiat Chrysler Automobiles (NYSE:FCAU) -4.5% to 168K, Honda (NYSE:HMC) +9.1% to 126K, Nissan (OTCPK:NSANY) +8.3% to 116K, Hyundai-Kia (OTC:HYMLF) +7.0% to 113K, Subaru (OTCPK:FUJHY) +15.0% to 53K, Volkswagen (OTCPK:VLKAY) +5.5% to 47.5K.
- Tesla Motors (NASDAQ:TSLA) isn't running up the volume quite yet to make the KBB list, but that is expected to change in 2017.
Wed, Nov. 23, 1:40 PM
- Morgan Stanley's Adam Jonas and team trim the price target on Neutral-rated Tesla (TSLA +2%) to $242 from $245 (still 30% upside), as stronger Q3 earnings were offset by the issuance of more than 13M shares for the SolarCity (NASDAQ:SCTY) deal.
- "Given (SolarCity’s) financial condition and recent reduction in guidance, we have assumed zero value for (SolarCity) equity to (Tesla) shareholders," says the team. The "ultimate outcome" for Tesla and its stock will continue to be dominated by the core automobile and transportation business.
- "The bigger mission remains developing a sustainable transportation ecosystem," they say, and estimate Tesla's global fleet drives about 5M miles per day, with roughly one-third of these on Autopilot.
- That pace is expected to double in a year, giving the company the opportunity to push state-of-the-art algorithmic driving and machine learning in personal transportation.
Wed, Nov. 23, 3:25 AM
- Now that Tesla (NASDAQ:TSLA) has officially acquired SolarCity (NASDAQ:SCTY), it's not wasting any time showing what the combined entity can do.
- The company is running the island of Ta'u (in American Samoa) on a solar energy microgrid that, at 1.4 megawatts, can cover "nearly 100%" of its 600 residents' electrical needs.
- It's not just the 5,328 solar panels that are key - it's the 60 Tesla Powerpacks that offer 6 megawatt-hours of energy storage.
- Check out a video about it here
Sun, Nov. 20, 5:50 AM
- Tesla's (NASDAQ:TSLA) new solar roof product will cost less to manufacture and install than a traditional roof - even before savings from the power bill.
- "Electricity," Elon Musk said, "is just a bonus."
- How is that possible? Not only do Tesla's glass tiles weigh up to 80% less than conventional roofing materials (cheaper to transport), they are more durable (less breakage) and glass is made using, basically, sand (a cheap material).
- Previously: Tesla Motors shines a light on solar plans at L.A. event (Oct. 28 2016)
Fri, Nov. 18, 5:27 PM
- Tesla (NASDAQ:TSLA) is reiterated with a Sell rating and a $160 price target at UBS, which sees challenges in integrating SolarCity (NASDAQ:SCTY), ramping up auto production and developing the upcoming Model 3.
- UBS considers the SCTY deal an "an unneeded distraction at a time when Tesla has many challenging targets ahead," including plans to start delivering the Model 3 within a year or so and to hike auto production to 500K deliveries per year, as it works to complete the construction of a massive battery plant in Nevada.
- As a side note, the firm thinks competition from TSLA bodes poorly for Sunrun (NASDAQ:RUN).
- Baird analysts are more optimistic, seeing potential long-term benefits as TSLA has identified growth opportunities (solar roof/complete energy systems) and SCTY is shifting toward cash sales and to become less reliant on capital markets; the firm rates TSLA at Outperform.
Fri, Nov. 18, 10:39 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) and Amazon (NASDAQ:AMZN) are teaming up to sell cars online, according to Reuters. Consumers will still finalize their car purchases at a dealership.
- The initiative will start off in Italy with the Fiat 500, Fiat Panda and Fiat 500L.
- "The time has arrived to give consumers a new, more efficient and transparent way to choose a new vehicle," says Fiat's top exec in Italy.
- Though the Fiat-Amazon tie-up isn't necessarily groundbreaking, it's still another crack in the dealership model that could have implications down the road.
- Related automobile sector stocks: GM, F, TM, HMC, OTCPK:NSANY, TSLA, OTCPK:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BMWYY, TTM, TSLA, AN, KMX, SONC.
- Previously: Amazon launches automotive research portal, Amazon Vehicles (Aug. 25)
Fri, Nov. 18, 8:20 AM
- Tesla Motors (NASDAQ:TSLA) cleared a nice hurdle when shareholders overwhemingly approved the company's merger with SolarCity, although major challenges are still ahead.
- The GOP sweep on November 8 is seen as putting government support for the renewable energy industry at risk. It's also no secret that Tesla has a heavy debt load in front of the Model 3 production ramp up. The SolarCity business is targeted to add $1B to Tesla's revenue in 2017 and $500M in cash over three years. Cost savings of $150M per year are also promised.
- "I think your faith will be rewarded," CEO Elon Musk told shareholders yesterday.
- Analysts are divided of course, although it's notable that a few more have upped long-term revenue projections for the energy side of the business.
- Tesla trades with a market cap of $28.66B, compared to Ford at $47.1B and GM at $50.9B.
- TSLA +1.24% premarket to $191.00