Sun, Jul. 19, 9:43 AM
- Major automakers face pressure from a drop in demand in China amid economic weakness. Deliveries turned negative in June for the first time since February of 2013 and the China Association of Automobile Manufacturers now expects industry sales growth of 3% vs. a prior forecast of 7%. Vehicle sales were up 1.4% to 11.85M units during 1H.
- Volkswagen (OTCQX:VLKAY) relies on China for half of its net profit and 71% of free cash flow. Credit Suisse notes the China factor gives the German automaker the punch to make a dividend possible.
- General Motors (NYSE:GM) churned up 40% of its new income and 20% to 30% of its operating cash flow from China, according to an estimate from Barclay tied to its downgrade of GM earlier in the week. Goldman Sachs and Buckingham Research have also recently cut profit estimates on GM.
- Ford (NYSE:F) cut its sales outlook for the China auto market to 24M-26M vehicles after Q1. The company could revise the broad forecast lower again with its Q2 report on July 28 and reset its own sales expectations.
- There's been some pricing cuts by the Japanese automakers (OTCPK:NSANY, TM, HMC, OTCPK:MZDAY, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:MMTOF) and German high-end sellers (OTCPK:BAMXY, OTCPK:DDAIF) as they adjust to the "new normal" in China.
- Tesla Motors (NASDAQ:TSLA) is still trying to get out of first gear in China. The reception to the Model X debut next year and the impact of EV subsidies are key factors.
- Domestic automakers (OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, OTCPK:DNFGY, OTCPK:DNFGF) have increased market share in China this year in key segments, but are feeling the same pinch from the drop in expected overall demand.
Fri, Jul. 17, 2:40 PM
- Tesla Motors (TSLA +2.4%) gives Model S owners a new option with a $3K battery upgrade to a 90-kilowatt version.
- Range is extended to 300 miles at 65 mph with the new battery.
- CEO Elon Musk promises "ludricious" mode with a software update which helps deliver 0-to-60 acceleration in 2.8 seconds. The time drops to around 3.2 to 3.3 seconds for the Model X SUV.
- The price on the single-motor Model S drops to $70K.
- Musk says the company is focused on making "awesome" cars - instead of directly commenting on the impact on sales of the Model S upgrades.
- Separately, Tesla states the Model X is on track for deliveries starting in two months. The Model 3 is still a bit more than two years off.
- Shares of Tesla moved lower during the course of the call and model update, but are nearly back to where they started at the top of the hour.
Fri, Jul. 17, 12:04 PM
- A fresh tweet from Elon Musk indicates a product conference call scheduled for 2:00 pm EST by Tesla Motors (TSLA +2.3%) will be focused on the Model S.
- Early speculation on the Tesla event centered on a Model X revelation or Gigafactory update.
- Previously: Tesla sends invites for July 17 event featuring Musk; shares higher (Jul. 16 2015)
Thu, Jul. 16, 6:58 PM| Thu, Jul. 16, 6:58 PM | 143 Comments
Thu, Jul. 16, 11:54 AM
- Tesla Motors (TSLA +1.4%) expects to sell its Model X in China during the first half of 2016.
- The company will utilize a network of showrooms in larger cities to introduce the SUV to Chinese consumers.
- As far as powering up Model S and Model X vehicles in China, the number of Tesla charging stations is up to 1.4K, while superchargers are also being added at a fast clip. Superchargers are reported to still be free for Chinese drivers similar to Tesla's policy in North America (some third-party charging stations in China charge fees).
- An introduction of the Model X in Japan is also expected in early 2016. Tesla has been accepting reservations in Japan for the X since 2013.
- Expansion for Tesla in Asia could also include South Korea if a recent job posting has significance. Though bigger than some European markets where Tesla does well, South Korea is a relatively small automobile market.
Wed, Jul. 15, 7:18 AM
- Tesla Motors (NASDAQ:TSLA) has tripled its land holdings in Nevada, according to The Wall Street Journal.
- The company utilized an option on its purchase agreement originally signed in 2011 for the land near Reno.
- Most of the acreage will be "buffer land"which can be used for solar arrays as needed, stated a Tesla spokesperson.
- The Gigafactory could employ up to 6.5K people after it's completed.
Fri, Jul. 10, 3:32 PM
- Elio Motors has raised $16M in just 19 days from an online crowdsourcing campaign aimed at helping it manufacture a vehicle listing for $6.8K.
- The startup automaker is looking to raise a total of $25M through a new passage in the JOBS Act that also falls in line with SEC regulations.
- Plans have been laid out by Elio Motors to develop the two-seat, three-wheel vehicle with a fuel economy rating of 84 mpg. An early prototype is reported to have reached a top speed of 100 mph. The vehicle is technically defined as a motorcycle which makes it a potential rival of Harley-Davidson (NYSE:HOG) and the super-budget segment of the automobile sector. That is if the startup beats the odds to manufacture at scale.
- The company says it wants to emulate the direct sales model of Tesla Motors (NASDAQ:TSLA) and partner with Pep Boys (NYSE:PBY) for service. Pre-orders of over $290M have been received, according to Elio's website.
- Suppliers for the Elio model include Lear (NYSE:LEA), Cooper Tire & Rubber (NYSE:CTB), and Bosch - while production is planned for an old GM plant in Louisiana.
Fri, Jul. 10, 5:14 AM
- Tesla (NASDAQ:TSLA) has hired ex-Burberry senior vice president Ganesh Srivats to lead North American sales, adding an executive to help extend its reputation for automotive luxury.
- Srivats will help Tesla deepen its already formidable brand into a premium lifestyle experience to go with its high-tech image, taking a cue from the kind of marketing BMW, Porsche and Ferrari have done.
- TSLA +2% premarket
Wed, Jul. 8, 10:37 AM
- Tesla (TSLA -5%) bulls are getting a gift as two recent downgrades have helped knock the stock price back nearly 10%, says Baird analyst Ben Kallo, reiterating his Outperform rating and $335 price target.
- The downgrades, he says, do not fully value the lower-priced Model X launch.
- Previously: Another downgrade for Tesla; stock slips 2% (July 8)
- Previously: Tesla cut to Hold from Buy at Deutsche Bank (July 7)
Wed, Jul. 8, 7:37 AM
- Tesla (NASDAQ:TSLA) gives back a bit more of its recent big run, as Pac Crest's Brad Erickson says the valuation is getting full and downgrades to Sector Weight.
- He sees fair value for the stock at $293, or just 8% above yesterday's close, meaning a more balanced risk/reward scenario.
- Shares -2% to $262.44 premarket.
Tue, Jul. 7, 8:47 AM
- Tesla (NASDAQ:TSLA) -1.6% premarket after Deutsche Bank downgrades shares to Hold from Buy, citing valuation and an "insufficient" risk/reward at current levels.
- The firm thinks the electric vehicle market should increase dramatically from current levels, and TSLA could become the dominant player in the space, but the company's opportunity looks priced into the stock at current levels.
- Despite the downgrade, the firm raises its 2020 EPS to $22.20 from $20 and raises its stock price target to $280 from $245.
Thu, Jul. 2, 7:47 AM
- Tesla (NASDAQ:TSLA) +2.8% premarket after saying it delivered 11,507 Model S sedans in Q2, a 52% Y/Y and 15% Q/Q increase as well as a company record.
- But the company will need an uptick of growth in H2 if it is to meet CEO Elon Musk's ambitious sales goal of 55K deliveries for the full year.
- TSLA does not release monthly sales; its practice of releasing quarterly sales started last quarter because it believed "inaccurate sources of information are sometimes used by others to project the number of vehicle deliveries."
Mon, Jun. 29, 11:11 AM
- Credit Suisse says it has a "high level" of conviction Tesla Motors (TSLA -1.6%) should be valued at $310 to $365 for a one-year timeframe. If Tesla Energy is factored in at its full potential, CS takes the one-year target to $400.
- Major improvements in the Model S increase the odds for a smooth Model X launch, reasons the investment firm.
- EPS forecasts from Credit Suisse: $0.12 for 2015 (-$0.02 consensus), $4.00 for 2016 ($3.42 consensus), $6.00 for 2016.
Fri, Jun. 26, 9:42 AM
- Tesla Motors (TSLA -0.6%) and the Gigafactory was discussed at a meeting last night in Nevada of economic officials.
- A representative from the Governor's office updated lawmakers that progress on the Gigafactory was slightly ahead of schedule.
- "Certainly by one year from now, that factory will be producing batteries," stated director Steve Hill.
- Pacific Crest is optimistic on the progress at Tesla after taking a factory tour in Fremont. Waves of new employees and pilot Model X shells were observed during the walk-through.
- "We continue to expect the X launch sometime in September and would expect investor optimism to grow into this launch," wrote the investment firm. Shares of Tesla are rated Overweight with a $293 PT.
- Also in the mix, automobile industry analysts noted a bit of smugness from execs out of Detroit with GM seemingly ahead of Tesla in the development of a 200-mile range mass-market EV. Some think the development is just an opening salvo in what could be a war of words over the next-gen models.
Thu, Jun. 25, 5:53 PM
- If there was ever any doubt, Jefferies analysts say Tesla (NASDAQ:TSLA) owners really love their cars, citing a firm survey that revealed exceptional brand loyalty.
- According to the survey, 25% of respondents are not considering any other brand but Tesla, 85% said their next car would be a Tesla, 83% stated they would recommend a Tesla to their friends, and 89% said they would still buy a Tesla even if the federal tax credit were eliminated.
- The survey also challenges conventional wisdom that owners are a uniform group of luxury car buyers, and that owners were willing to pay an average of ~60% more for a Tesla, meaning that introducing the Model III by 2017 - whose advertised sticker price is expected at +/-$50K - should help the company tap into the $35K+ price point.
Mon, Jun. 22, 12:19 PM
- A Tesla Motors (TSLA -0.9%) spokesperson has clarified a slide from a presentation made by an executive at a conference last week on the expected launch date of the Model 3.
- The Model 3 is still "on schedule" and will begin production in 2017.
- "[The] slide is a high-level look into when Model 3 will be in full production," stated Tesla's Khobi Brooklyn.
- Earlier: Tesla Motors Model 3 launch pushed back to 2018
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