Sat, Feb. 14, 10:53 AM
- The automobile industry was jolted yesterday by reports on Apple developing its own electric vehicle.
- Though the development has the potential to be disruptive for EV automakers, the impact could be even larger for companies betting on fuel cells if the $740B Cupertino giant takes a strong position in the EV vs. hydrogen debate through a partnership or vehicle introduction.
- Shares of Tesla Motors only showed a mild reaction to the Apple reports yesterday during the regular session and AH trading.
- Toyota is the company out in front on FCV development with the Mirai debuting in many markets this year. The automaker audaciously calls the model the "turning point" in automotive history.
- In regard to Apple, by most appearances, Toyota has been slow-playing the integration of Apple's CarPlay into future platforms.
- Related: The electric vs. hydrogen debate just got interesting (Jan. 15 2015)
- Related: Fuel cell development in Japan to gear up before 2020 Olympics (Jan. 20 2015)
- Related: Millennials have the steering wheel now (Jan. 31 2015)
- Related: Apple car project is for real, and it's a minivan (Feb. 13 2015)
- Automobile industy stocks: GM, F, TM, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, TTM, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:GELYF, FCAU, BLDP, KNDI.
Fri, Feb. 13, 6:17 PM
- Some more color on reports that Apple (NASDAQ:AAPL) has been hiring auto engineers, including from Tesla (NASDAQ:TSLA): The company has several hundred employees working on project "Titan," toward an Apple-brand electric car that one source says resembles a minivan, The Wall Street Journal reports.
- It might not end up as a released car, the report notes -- lots of work along the way could be used to boost other Apple products -- but the size of the team is telling.
- VP Steve Zadesky was reportedly given permission to create a 1,000-person team for the project and to work off-site from Apple HQ.
- Building cars is expensive, requiring billion-dollar plants, but Apple's $178B in cash means the barrier to entry is far smaller than for others.
- A self-driving car (a la Google (NASDAQ:GOOG)) is not in Apple's plans, a source says.
- After hours, TSLA -0.9%.
- Previously: Talent showdown between Tesla Motors and Apple (Feb. 10 2015)
Fri, Feb. 13, 2:22 PM
- Apple (NASDAQ:AAPL) is actively recruiting automobile industry experts to work at a secret lab, sources tell Financial Times.
- The hires are reported to include vehicle design experts.
- Earlier this week, CEO Tim Cook called CarPlay (auto OS) a key technology platform for the company in the future.
- CarPlay is expected to be included in some future Ferrari, Daimler, Volvo, and Volkswagen models.
- Though this week's events have rekindled some rumors of an iCar, there's nothing solid yet from Apple indicating it's heading in that direction.
- The plans of Apple in auto has some bearing on Tesla Motors (NASDAQ:TSLA), BMW (OTCPK:BAMXY), and even General Motors (NYSE:GM) with its OnStar asset.
- Apple isn't the only tech giant dabbling in the auto sector, Google has ambitious self-driving car and Android integration projects of its own.
- Related: Talent showdown between Tesla Motors and Apple.
Thu, Feb. 12, 2:24 PM
- There's no shortage of commentary on Tesla Motors (TSLA -5.1%) following the company's Q4 earnings report and delivery guidance.
- JPMorgan: The investment firm downgraded shares to Underweight from Neutral due to execution risk and lowered its PT to $175.
- Barclays: "The result reinforces that Tesla’s push to become a mass market OEM is much harder than it looks."
- Pacific Crest: "Our biggest takeaway was the gross margin outlook calling for the Model S to exit 2015 at 30%."
- Edmunds.com: The auto-watching research firm is positive on Tesla, but has a wary eye on the impact of BMW with its i3 and i8 models.
- SA: Why is Tesla Throttling Production?, Is the Tesla Bubble Bursting?
- Previously: Tesla misses by $0.44, misses on revenue (Feb. 11)
- Previously: Tesla's Q4 hurt by delayed deliveries; strong 2015 growth expected (Feb. 11)
- Previously: Tesla Motors call: Just watch for deliveries, profits, and a secret weapon
Thu, Feb. 12, 9:15 AM
Thu, Feb. 12, 8:14 AM
- Tesla Motors (NASDAQ:TSLA) CEO Elon Musk indicated during the firm's conference call last night that the Model 3 should be in production by the second half of 2017.
- The EV automaker won't go "super crazy" with the mass-market model, according to Musk.
- A lot of time on the call was spent defusing the blown-up concerns on the slow start in China (somebody is losing their job) and restating his confidence on Tesla's profitability (the numbers work out).
- The forecast for 55K vehicles (Model S and X) delivered in 2015 appears to be a rather loose target with a revision up or down likely.
- Musk also went into SpaceX-Musk mode with a tease of a secret weapon on the demand side. "It could be pretty interesting," he said with no elaboration.
- Look for a lot of capex spending out of Tesla and very little marketing in 2015.
- Earnings call transcript
- Previously: Tesla misses by $0.44, misses on revenue (Feb. 11 2015)
- Previously: Tesla's Q4 hurt by delayed deliveries; strong 2015 growth expected (Feb. 11 2015)
- TSLA -7.77% premarket to $196.27.
Wed, Feb. 11, 5:39 PM
- Tesla Motors (NASDAQ:TSLA) announces it delivered 9,834 vehicles in Q4. 11,627 vehicles were produced, leading the company to hit a 2014 production target of 35K Model S units.
- Q4 results were hurt by delayed Model S P85D deliveries caused by "a combination of customers being on vacation, severe winter weather and shipping problems." The company also blames "one-time manufacturing inefficiencies related to the introduction of P85D and Autopilot functionality, and the impact of the strong dollar."
- Tesla expects to ship 55K Model S and X units in 2015, yielding more than a 70% Y/Y increase in deliveries. 40% of the deliveries are expected in the first half of the year.
- Q4 non-GAAP gross margin was 26.7% vs. 23.0% in Q3 and 25.2% a year ago. Automotive gross margin was 22%. Operating expenses rose 15% from Q3 to $297M.
- Q1 production is only expected to be at 10K vehicles, and deliveries at 9.5K (+47% Y/Y). Automotive gross margin is expected to be at 26%, and operating expenses are expected to rise 12%-15% from Q4.
- Tesla took in $42M from powertrain sales during Q4 and $86M in regulatory credits. The company entered 2015 with over 10K Model S orders and nearly 20K Model X reservations.
- A conference call is scheduled for 7:30 PM ET (webcast).
- Tesla shareholder letter (.pdf)
- TSLA -2.4% after hours.
- Previously: Tesla misses by $0.44, misses on revenue
Wed, Feb. 11, 5:21 PM
Tue, Feb. 10, 5:35 PM
- ABCO, ACHC, AEM, AMAT, AMBR, AUY, BIDU, CAKE, CJES, CPA, CRAY, CSCO, CSOD, CTL, CVA, CXW, CYS, DDR, DIOD, EFC, EFX, EXL, FET, FEYE, FORR, GAS, HIVE, HNI, HOS, IO, ITRI, LPSN, MET, NSIT, NTAP, NTWK, NU, NVDA, OII, PNRA, PPC, QDEL, REG, SCSS, SKX, SLF, SPRT, STMP, SWM, TAL, TCX, TRIP, TSLA, TSO, TTGT, WFM, ZEN, ZU
Tue, Feb. 10, 3:54 PM
- Tesla Motors (TSLA -0.3%) sold only 120 cars in China during January, according to a report from Reuters.
- The mark falls below the expected pace for the region.
- A leaked memo from Tesla CEO Elon Musk has warned country managers that their jobs are at risk if performance isn't on a track to produce long-term positive cash flow.
- Shares of Tesla retreated from positive territory after the story broke.
- Previously: Tesla Motors to introduce new models in China (Jan. 26)
- Previously: Tesla China chief exiting (Dec. 12, 2014)
Tue, Feb. 10, 11:34 AM
- Some anecdotal evidence suggests a tug-of-war has broken out between Apple (NASDAQ:AAPL) and Tesla Motors (TSLA -0.5%) over top talent.
- Tesla has hired over 150 Apple employees across divisions, according to a Bloomberg report issued last week.
- But no reason for worry in Cupertino, Apple has hired about 50 engineers from Tesla in what a tipster tells Business Insider is a vehicle development project.
- The best guess from analysts is that the companies might compete on next-gen infotainment OS and vehicle-to-vehicle communication standards.
- If Apple were to make a strong entry into the automobile sector it opens up a few interesting questions for investors on where to place their bets.
Fri, Feb. 6, 3:47 PM
- Tesla's (TSLA -1.8%) stock price target is lowered to $200 from $220 at Barclays, which explains that its fundamental difference with TSLA bulls lies around the company's ability to become a successful mass-market OEM.
- While Barclays says the bulls would argue that TSLA will be the next Ford, it sees many challenges ahead for the company; upon revisiting its margin and delivery estimates, the firm says it is reminded again that "crossing that chasm is harder than it looks, especially in a new era of low oil prices."
- The firm warns that while TSLA eventually could reach double-digit operating margins, it thinks Wall Street may be underappreciating that margins will be suppressed at least through the end of the decade as TSLA increases R&D and SG&A investment to support its growth.
Tue, Feb. 3, 7:41 PM
- Automakers turned in an impressive U.S. sales tally for January with majors GM, Ford, Fiat Chrysler Automobiles, Honda, and Toyota all with double-digit sales growth.
- The gains weren't top-heavy as Subaru (+24%), Audi (+14%), Mitsubishi Motors (+33%), and even Porsche (+27%) all big gainers.
- Sales of lights trucks and SUVs rose 19.3% during the month, according to Autodesk.
- Average transaction prices were up 5.2% Y/Y on average, estimates Kelley Blue Book. GM and Ford both benefited on their ATP through a higher mix of SUVs and trucks.
- It wasn't a spectacular month for electric vehicle sales with demand for the Nissan Leaf falling off and the Tesla Model S an insignificant factor in the U.S. total.
- High-level automobile execs attributed the strong demand in part to the $2 gas price level seen across the U.S.
- Automaker stocks: GM, F, TM, HMC, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, TTM, OTCPK:MMTOF, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:GELYF, FCAU, OTCPK:NSANY, OTCPK:DDAIF.
Mon, Feb. 2, 11:16 AM
- Global Equities Research increases its price target on Tesla Motors (TSLA +3.8%) to $385 after factoring in the impact of a strong U.S. dollar on the EV automaker's bottom line.
- The investment firm estimates 70% of Tesla's component costs are from international suppliers which gives it a nice tailwind for 2015 profitability.
- Though the mix of Tesla sales is roughly 50-50 between domestic and international, Global Equities thinks many global buyers for Tesla vehicles are performance-sensitive and will absorb some of the dollar impact on local price.
- SA contributor Nick Cox has the other side of argument. He warns the strong USD is an immediate concern for Tesla in Japan and Australia.
Sat, Jan. 31, 10:39 AM
- Automakers need to address the issue of how to sell to millennials, according to data from TrueCar.
- The group is projected to purchase 4.24M vehicles in 2015 to account for close to 25% of the total new car market in the U.S. That's a percentage that will stay on the rise over time.
- A few things to keep in mind about millennials.
- They have an indie spirit that can veer away from dominant brands. Just ask McDonald's or Anheuser-Busch InBev.
- They are early adopters of new technology. Just ask the cable companies.
- They don't take their marching orders from Madison Avenue on what products are on-trend. Just ask Abercrombie & Fitch.
- Millennials are likely to have a lot to say with the critical question on if electric batteries or hydrogen fuel cells (Tesla vs. Toyota) emerge as the dominant alternative energy source for the industry.
- Automaker stocks: GM, F, TM, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, TTM, OTCPK:MMTOF, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:GELYF, FCAU.
Thu, Jan. 29, 1:40 PM
- Tesla Motors (TSLA +2.9%) will release Q4 and annual results after the market closes on February 11.
- Analysts expect revenue of $1.23B in Q4 and EPS of $0.31. The crowd at Estimize is higher at $1.289B rev and $0.49 EPS.
- Guidance from the automaker is for full-year 2014 deliveries of 33K.
- The bar on 2015 Model S deliveries was set by Tesla at 50K units.
- Key items to watch in the report will be sales growth in China, Gigafactory progress, and any change to the timetable for the Q3 introduction of the Model X.
TSLA vs. ETF Alternatives
Other News & PR