Fri, Dec. 9, 3:30 PM
- The opening stages of the Chevy Bolt vs. Model 3 war are beginning as the automobile industry looks to sell pure EVs at a larger scale.
- The first shipments of the all-electric Bolt are already on their way to California after being built in Orion Township, Michigan. Sales in Oregon and California are expected to start before the end of the year.
- JPMorgan sizes up the situation in a fresh note backing its negative view (Sell, $180 PT) on Tesla Motors (TSLA) and discussing its meeting with GM execs.
- JP: "We expect it will become increasingly more difficult for Tesla to profitably compete against an improving array of electric vehicles from automakers which are pricing such vehicles with the aim not to turn a profit but rather to sell in sufficient volume to subsidize the rest of their more lucrative portfolios of internal combustion engine vehicles from a regulatory compliance perspective."
- Tesla's Model 3 introduction will follow in 2017 or 2018 depending upon which analysis you bank on. And while the precise number of Model 3 pre-orders isn't publicly known, a Tesla fan site has an enigmatic algorithm that places the number over 510K.
Fri, Dec. 9, 2:17 AM
- Jumping further into the auto industry after its $8B acquisition of Harman Industries last month, Samsung Electronics (OTC:SSNLF) has signed a contract to supply semiconductors to Tesla Motors (NASDAQ:TSLA).
- According to South Korea's Electronic Times, Samsung will contract manufacture chips for self-driving features in Tesla vehicles, but the paper didn't put a value on the order.
Thu, Dec. 8, 8:03 AM
- Automobile sales in China rose 19.8% in November to 2.42M units, according to the Passenger Car Association.
- Demand in China has been impacted by a tax cut that is due to expire at the end of the year. The government hasn't announced yet if the tax break will be extended.
- Chinese automakers Geely Automobile, Guangzhou Auto and Great Wall Motors all saw huge market share gains during the month.
- Auto sales are up 15.7% YTD to 21.1M units to mark an annual record with another selling month still to go.
- Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, OTCPK:VLKAY, OTCPK:BMWYY, GM, OTC:GNZUF, OTC:GNZUY, TSLA, F, OTCPK:NSANY, TM.
Wed, Dec. 7, 10:44 AM
- A shareholder lawsuit against Tesla Motors (TSLA +0.6%) in Delaware is moving into the arguments phase.
- The judge in the case is expected to rule on a request from the plaintiff for internal Tesla records on customer demand and production issues.
- Tesla'a attorneys maintain that the relevant documents have already been provided.
- Though the case isn't considered a significant concern for Tesla by analysts, there is the chance that some internal sales projections and production information could be revealed as part of the discovery.
- The case is Shahid Haque vs. Tesla Motors in Delaware Chancery Court (original complaint filing).
Tue, Dec. 6, 6:10 PM
- Tesla (NASDAQ:TSLA) says it is voluntarily recalling ~7K adapters for electric vehicle charging after two reports of overheating that resulted in melted plastic on the adapters.
- The two cases involve NEMA 14-30 adapters, which are sometimes used to charge TSLA vehicles via clothes-drier appliance outlets in U.S. homes; TSLA also will replace the NEMA 10-30 and 6-50 adapters, which have a similar design.
- The recall does not involve the Tesla Wall Connector, Universal Mobile Connector or NEMA 14-50 or 5-15 adapters that come standard with the company’s vehicles.
- The recall is TSLA's fourth since it began delivering the Model S to customers in June 2012, but the first of just an accessory.
Tue, Dec. 6, 7:15 AM
- UBS predicts the era of diesel passengers cars is slowly coming to an end as manufacturers adopt a higher mix of hybrid and electric powertrains.
- The investment firm sees a drop of global diesel market share to 4% in 2025, from a current share of about 13.5%.
- The development is seen as positive for Ford (NYSE:F), General Motors (NYSE:GM), Tesla (NASDAQ:TSLA), Nissan (OTCPK:NSANY), Honda (NYSE:HMC), Toyota (NYSE:TM) and Hyundai (OTC:HYMLF). The slide in diesel market share will hurt Fiat Chrysler Automobiles (NYSE:FCAU), BMW (OTCPK:BMWYY), Peugeot (OTCPK:PEUGF, OTCPK:PUGOY), Renault (OTC:RNSDF) and Volkswagen (OTCPK:VLKAY), warns UBS. European oil refinerers could also feel a neagtive impact.
- Source: Bloomberg
- Previously: EVs a long-term wildcard in the oil market (Dec. 3)
Mon, Dec. 5, 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.