The True Genius Of Tesla
John Petersen • 676 Comments
John Petersen • 676 Comments
The True Genius Of Tesla
John Petersen • 676 Comments
John Petersen • 676 Comments
Mon, May 23, 1:21 PM
- Tesla Motors (TSLA -1%) has already partnered up with Mando Corporation to develop self-driving automobile technology, according to Korean publication Maeil Business Newspaper. The companies are working specifically on fail-safe systems.
- The EV automaker is reported to have chosen Mando over Bosch, TRW, and Continental, although execs with Mando are pointing toward a NDA agreement instead of confirming a deal.
- Mando is Korea's largest auto supplier with annual sales of over $5.2T won ($4.39B).
Fri, May 20, 8:05 AM
- Tesla Motors (NASDAQ:TSLA) has told multiple suppliers that it aims to produce 100K Model 3s in 2017 and 400K in 2018, according to Reuters.
- Some industry insiders are expressing doubt on the Tesla timetable based on the normal amount of time needed between model design completion and assembly line launch. There's also the nagging issue of sourcing aluminium, lithium, and other materials at scale.
- Tesla's stated plan is to drop suppliers that can't keep up with its aggressive targets and maximize its in-house capabilities.
- TSLA +0.83% premarket to $216.99.
Thu, May 19, 9:25 AM
- Investors and analysts are seemingly unfazed by the announcement of a $1.4B capital raise by Tesla Motors (NASDAQ:TSLA). Most investments firms predicted a raise in the neighborhood of $1B to $1.5B and factored that tally into earnings estimates.
- By most projections the cash infusion will fund Tesla through next fall when Model 3 production is scheduled to begin.
- Baird called the amount of the capital round "just right," while RBC Capital said it was earlier than anticipated.
- Bill Maurer highlighted an interesting tidbit from the Tesla SEC filing in a Seeking Alpha article posted last night. The EV automaker said it hold deposits on 373K customers for Model 3 orders on May 15. That figure includes 8K cancellations and 4.2K reservations struck down by Tesla due to being duplicates. Do the math and it seems to point to some pretty rapid deceleration in order taking.
- Full Tesla SEC filing
- TSLA +0.80% premarket to $212.85.
Wed, May 18, 4:07 PM
- The company launches a roughly-$2B secondary, with $1.4B being offered by Tesla (NASDAQ:TSLA) and the rest being sold by Elon Musk to cover the taxes on his concurrent exercise of more than 5.5M stock options.
- Proceeds (from Tesla's sale) will be used to accelerate the ramp of the Model 3.
- As for the CEO, the company notes the transactions will have the effect of increasing Musk's stake in Tesla.
- Source: Press Release
- Goldman Sachs and Morgan Stanley are the lead underwriters. Goldman's upgrade this morning helped send Tesla higher by 3.2% in the regular session.
- Shares are lower by 2% after hours.
Wed, May 18, 7:32 AM
- Tesla Motors (NASDAQ:TSLA) is on the move in early trading after Goldman Sachs lifts its rating to Buy from Neutral.
- Analyst Patrick Archambault feels that shares aren't capturing the EV automaker's "disruptive" technology in full. He also thinks Tesla will be a major player in shared mobility.
- GS sets a price target of $250 on Tesla which factors in a capital raise of a cool $1B. Which investment firms get the book runner positions on the capital raise hasn't been determined yet.
- TSLA +2.61% premarket to $210.00 vs. a 52-week trading range of $141.05 to $286.65.
Mon, May 16, 2:03 PM
- Colorado enacted a major tax credit for electric vehicle purchases with the passing of HB 1332.
- The legislation gives buyers of an EV in Colorado a $5,000 tax credit which can be immediately realized at purchase through a dealer incentive.
- The same buyer is still eligible for the $7,500 federal tax credit for the EV purchase.
- The Southwest Energy Efficient Project calls the Colorado EV incentive the best in the nation.
- 2016 YTD U.S. EV sales (via InsideEVs.com): Tesla Model S 7,190 units (estimated); Chevrolet Volt 5,970; Ford Fusion Energi 4,082; Nissan Leaf 3,718; Tesla Model X 3,250 (estimated), Ford C-max Energi 2,057; BMW i3 1,576; BMW X5 xDrive40e 1,494; Fiat 500e (estimated) 1,335; Audi A3 Sportbk e-tron 1,233; Chevrolet Spark 1,026; Volkswagen e-Golf 938.
- Related stocks: TSLA, OTCPK:NSANY, GM, F, OTCPK:BAMXY, OTCPK:VLKAY, FCAU.
Fri, May 13, 8:59 PM
- After seeing two top manufacturing executives with key Model X roles depart, Tesla (NASDAQ:TSLA) has made a key hire in Audi executive Peter Hochholdinger.
- Hochholdinger is taking over as the new VP of Vehicle Production, responsible for the Model S and Model X and scale-up on the upcoming Model 3.
- At Audi, he was responsible for production of the A4, A5 and Q5 models and oversaw thousands of employees.
- Now read Tesla: Brand Loyalty Matters »
Thu, May 12, 9:40 AM
- BMW (OTCPK:BAMXY) CEO Harald Krueger says the automaker's long-range battery electric vehicle is still several years away from being introduced. The EV replacement for the 7-Series sedan is expected to come to market in 2021 -long after Audi (OTCPK:VLKAY), Mercedes-Benz (OTCPK:DDAIF), and Tesla Motors (NASDAQ:TSLA) are in with their aspiring game changers.
- Krueger made the announcement at BMW's annual shareholder meeting in Munich, Germany amid a broad talk on strategy.
- The iNext from BMW will include advanced autonomous driving features and the latest mobility technology on top of the +500 km range.
- The German automaker's slow roll into the long-range EV market has raised some questions with industry analysts, even as i3 and i8 EV/hybrid sales come in at a tepid pace.
- Car shopping data does seem to suggest that BMW needs to take the Tesla threat seriously. 28% of Tesla shoppers in March also looked at a BMW model which was the leading brand overlap by a wide margin (Toyota 23%, Audi 20%, Mercedes-Benz 19%, Ford 17%, Lexus 16%).
Wed, May 11, 2:32 PM
- Tesla Motors (NASDAQ:TSLA) came up during the SkyBridge Alternatives Conference underway in Las Vegas with oil legend T. Boone Pickens and real estate heavyweight Sam Zell both having something to say about the EV automaker, according to Business Insider.
- Zell took issue with the subsidization of the electric vehicle industry by the government. He feels the investment doesn't add up on a cost-benefit analysis.
- Pickens knows a good salesman when he sees one, but indicated that he's going to pass on backing Musk's vision.
- Other speakers at the eclectic conference include Michael Bloomberg, Kobe Bryant, Mark Mobius, and Mark Cuban. It's unclear if Tesla will be brought up again.
- Tesla is up 1.20% on the day to $211.04.
Wed, May 11, 2:24 AM
- Tesla (NASDAQ:TSLA) is warning of production risks associated with the Model 3, the mass-market sedan the electric car maker expects to begin building within the next 18 months.
- "We have no experience to date in manufacturing vehicles at the high volumes that we anticipate for Model 3...and plans for the build out of our production facilities...and various aspects of component procurement and manufacturing plans have not yet been determined."
- Tesla also cautioned that if one or more of its "many assumptions" turns out to be incorrect, its "ability to successfully launch on time and at volumes and prices that are profitable...may be materially and adversely impacted."
- SEC Form 10-Q
Mon, May 9, 2:21 PM
- Morgan Stanley adjusts some estimates on Tesla Motors (TSLA -3.2%) after digesting the Q1 numbers and annual guidance from the EV automaker.
- Adam Jones expects 70K deliveries this year (16k Model X + 54K Model S units) vs. Tesla guidance for 80K to 90K units.
- The forecast for annual gross margin is set at slightly above 25% vs. the Tesla target for a mix of 30% margins on the Model S and 25% on the Model X.
- MS pulls forward its 2016 capex estimate to fall in line with Tesla's guidance for $2.25B this year.
- A long-time bull on Tesla, Jonas sticks with an Overweight rating and $333 price target. The lush PT is about 150X the 2018 EPS forecast of $2.22.
- Now read Tesla: Beyond Automotive
Mon, May 9, 2:32 AM
- Morgan Stanley cuts 2016 EPS estimates for Tesla (NASDAQ:TSLA) to -$0.02 vs. $0.68 prior. Cuts 2017 estimates to $0.35 vs. $1.14 prior.
- Delivery estimates are largely unchanged; ~70k units in 2016 (vs. the reiterated guidance of 80-90k shipments), composed of ~16k Model X and ~54k Model S units. By 2018, ~108k units, vs. the updated target of 500k.
- Target price of $333 remains unchanged. Implied upside 55%.
- Now read Tesla: Pride Goeth Before Destruction
Thu, May 5, 10:47 AM
- Shares of Tesla Motors (NASDAQ:TSLA) are down 4.53% to $212.45 as some of the post-earnings enthusiasm from the EV automaker's new ambitious targets is overtaken by the open-ended question of a capital raise. Though for the most part bulls are staying confident and bears are taking their shots, here's a snapshot of the Tesla interchange.
- RBC Capital Markets: "Tesla is increasingly asking the equity investor to sign up for a complex manufacturing ramp (5x in 2 years) the likes of which we don’t believe has ever been seen before. This brings both elevated expectations and execution risk." (via Barron's)
- Stifel Nicolaus: "We think a capital raise would be completely reasonable in light of higher initial Model 3 demand than expected. In terms of the guidance, though loosely mentioned in the past, we view the 2,000 units/week production rate at the end of 2Q16 as a modest improvement vs. prior expectations (from 2Q15/3Q15 shareholder letters), which called for a 1,600-1,800 units/week average throughout 2016 and 2k units/week by year end."
- Deutsche Bank: "Investors are well aware of Tesla’s propensity for aggressive projections. That said, there is no question that this [growth plan] represents a significant development."
- Baird: "We continue to model zero Model III deliveries in 2017, and increased our 2018 Model III estimate to ~160k (up from 40k), and total deliveries to 300k versus TSLA’s 500k vehicle target." (via Benzinga)
- Elon Musk: "Tesla is going to be hellbent on becoming the best manufacturer on Earth." (via conference call transcript)
- SA contributor Anton Wahlman: "The negative free cash flow worsened this quarter, partially because of last quarter's major end-of-year inventory clear-out. On a per-car basis, it was up from $25,236 per car sold to $31,497." (via SA Article)
Wed, May 4, 4:17 PM
- Tesla Motors (NASDAQ:TSLA) announces that it still expects to deliver 80K to 90K vehicles this year. The automaker will have some back-half pressure with Q2 deliveries of 17K expected.
- Q1 Model S orders were up 45% Y/Y on broad-based global demand.
- Q1 automotive margin came in at 20.0% on a non-GAAP basis (ex-ZEV credit revenue).
- Q1 services and other revenue rose 160% Y/Y to $121M.
- Tesla on CapEx: "We are re-evaluating our level of capital expenditures, but expect it will be about 50% higher than our previous guidance of $1.5 billion for 2016."
- Looking ahead, Tesla expects to need the extra capital to open the Gigafactory earlier than originally anticipated (first cells coming in Q4).
- The company says Model 3 production and deliveries will begin late in 2017. The target date to hit 500K in production is advanced to 2018.
- Tesla shareholder letter (.pdf)
- Previously: Tesla beats by $0.01, revenue in-line (May 4)
- TSLA +2.40% in after-hours trading to $227.91.
Wed, May 4, 4:09 PM
Wed, May 4, 12:57 PM
- Moving on to Elon Musk as he previews his Ira Sohn presentation for CNBC, Jim Chanos says Tesla (TSLA -4.2%) can't forecast one month out, let alone years. He finds it hard to believe the company can make money on a $35K car, and says a capital raise is "definitely" in store this year.
- Solar City (SCTY -2.6%), he says, loses money on every installation.
- Of Elon Musk: He hopes you forget what he talked about a year ago.
- Previously: Chanos makes short case on Cheniere Energy and Valeant (May 4)
Tesla Motors, Inc. engages in the design, development, manufacturing, and selling of electric vehicles and electric powertrain components. Its products include electric vehicles such as the Model S, Model X, and the Tesla Roadster. The company was founded by Jeffrey B. Straubel, Elon R. Musk and... More
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Country: United States
Other News & PR