Tag Archives: Model S

Tesla will deliver 30 Model 3 units on Friday 28 and 100 cars in August

Tesla is now ready to deliver Model 3 to customers, and Elon Musk will deliver 30 Model 3 units today, friday 28th. Musk has also said he will deliver 100 cars in August and about 1,500 in September. In the long run, Tesla are planning to deliver about 20,000 Model 3 units a month.

Volume is the question here. Are they able to deliver what they have promised? Annual production was said to be 500,000 units by 2020, but Tesla said last year that they will reach that goal in 2018 which is a big jump in production from today`s annual 100,000 units.

 

 

Tesla launched Model X last year but have so far seen a lot of challenges. The SUV was late to the market, and had a lot of problems with its technology. This made it difficult to produce Model X fast enough.

They have learned for that and built a new model that is much more easy to build which will give them the opportunity to reach their volume goal much faster. Can they make it? Investors will follow very closely.

Tesla Model 3 is a low-cost $35,000 vehicle. The question is: Will the demand for Model X and Model S decrease as the demand for Model 3 will rise?

It can be a bumpy road for Tesla, but the launch of Model 3 looks like a great growth plan for the company.

Tesla is expected to report earnings next week on August 2 after market close, and the report will be for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $-2 which is worse than last years $-1,54 for the same quarter.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tesla is driving down the road along with its equities

2016 is so far terrible for Elon Musk. Tesla is down nearly 40%, trading at $148,25. Not only that. His SolarCity is down about 30% from start today. GM look even better at the moment, which is down only 16% YTD.

Barclays maintained an Underweight rating on Tesla and its new price target is $165. Analyst at Barclays Brian Johnson said; «Although we expect an inline 16 guide, so we think the slow ramp may challenge deliveries, cash burn, and margins, while also reminding us of risks in the years ahead to Tesla`s aggressive growth ambitions.»

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Estimize calls for EPS of $0,04, which is 4 cents higher than Wall Street while revenue estimates of $1,8B (up 69% from last year) are right in line with the Street. Estimize is bearish on Tesla`s profitability, moving EPS estimates down 58% this quarter, but still expecting impressive YoY growth of 130%!

Tesla delivered a record 50,580 vehicles but failed to meet volume expectations Tesla set earlier in the year. Investors sent the stock down over concerns that Tesla won`t be able to execute on its ambitions growth plans.

Given operation expenses account for almost 50% of the company`s revenue, missing volume forecasts put a severe damper on margins. Tesla have spent a lot of money in launching its first SUV and building out a sustainable battery.

If the Model X SUV sales are missing like the sales of the Model S sedan, it could have a huge effect on the stock price this year. It is a bearish sentiment on Tesla`s ability to turn a profit in Q4, and analysts have recently downgraded Tesla from a hold to sell rating.

10 out of 15 brokerage firms now say Tesla is a «hold» or worse, but Barclays’ Johnson also said the shares could see a short-term rebound after the March unveiling of the Model 3, especially with an unwinding of current bearish sentiment.

Tesla will report after the bell on Wednesday.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tesla Model X could be delayed until early next year

 

Green energy like solar and battery driven automotive cars are great business, and Tesla Motors is one of the most interesting and exciting automotive companies in the U.S to watch right now. The company lost $50 million in Q1 and they will probably continue to lose money, so their new  Model X could be delayed until 2015.

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They produced 7,535 new cars in the first three months of this fiscal year, and lost $50 million on GAAP basis, using the non-GAAP method that Tesla prefers, it saw $17 million in net income. EPS is $0,12, and that was less than some of the rosier forecasts.

 

The demand for Tesla is rising and their demand rose 10 percent in the quarter. China can become the biggest market, and Elon Musk said he is «blown away» by the level of enthusiasm in China. There is a five month wait for the cars and some customers are frustrated.

 

It`s Fremont factory will be shut down for ten days in July whilst it installs a new, more efficient production line with more automotive. If the Gigafactory and Gen III production aren`t well synchronized, Tesla will be in big trouble.

 

Things never run perfectly smoothly and there is some bad news for waiting Model X customers. CEO Elon Musk said Model X will be delivered in the second quarter of 2015, pushing back the expected date by a couple of months.

 

guidance for Model S is 7,500, up from 6,457 delivered in Q1. Tesla have started to deliver in U.K and China, which is two new markets with great demand. It`s hard to be negative about the numbers in light of the two new markets and Q2 production already having been sold. So, why does the quarter look like it will go down to the wire?

 

It`s estimated that Tesla`s May deliveries will come in at 1,000, and this is down from 1,100 in April. It`s also down from 1,700 in May last year. It looks like the delivery in U.S has peaked for a long time, and that stagnation is the result right now. This will be interesting for Q3 and Q4, since Tesla will run out of large new markets except for Japan.

 

The biggest market is U.S, and the second largest market is in terms of population, is Norway, which had a massive month of March, but at this point it is looking peaked. This is just how the automotive market work.

 

On june 12, CEO Elon Musk wrote a blog stating that Tesla would not initiate lawsuits against anyone who wishes to use their technology in good faith. They are not anti-competitive and do not entrench the power of dominant firms in their respective markets. The terms must be applied in a non-discriminatory manner, and rights are licensed at rates that if aggregated would not make the industry uncompetitive.

 

CEO Elon Musk wrote:

“Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor…”

 

Tesla`s move to open its patents is about hardcore strategic thinking. They simply try to remove obstacles to EV industry growth by helping develop homogeneous solutions. Tesla can use this as a Trojan horse to become a toll collector on all EV revenues in the future.

 

It`s a growing concern among different investors that Tesla would not be able to repay $2,2 billion in debt in the next four to seven years. Bonds were assigned a junk rating in May by credit rating agency Standard & Poor`s.

 

Tesla is in partnership with other vehicle manufacturers like Toyota and Daimler. Toyota bought $50 million worth of stock when Tesla went public in July 2010, and Daimler spent $50 million for a 10 percent stake in 2009. Both companies relied on Tesla for help in the development of electric vehicles.

 

Daimler uses a Tesla battery in the electric version of its Smart City car, and its Mercedes B-class EV features a Tesla power train. Toyota signed a $100 million-contract with the company to supply power trains, gearbox and software for the RAV4 EV, and the deal ended in May 2014.

 

Model X reservation confirmations went out early and so far Elon Musk hasn`t given shareholders a reason not to trust him. No doubt that Tesla longs are a cultish, giddy group of investors. Tesla is a revolutionary green company that belongs to the future.

 

Reports today:

08:30 a.m EST Building Permits

08:30 a.m EST Core CPI m/m

08:30 a.m EST CPI m/m

08:30 a.m EST Housing Starts

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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