Tag Archives: Tesla

Apple have a cash hoard of $250 billion and enough software know-how to build great self-driving car technology

Apple is a big company with a market cap of $783,07 billion, and most of its success is coming from its flagship iPhone. CEO Tim Cook in May noted a «pause» in iPhone sales but Apple is expected to come out with a new and expensive iPhone in a few months.

It will be a super premium tenth-anniversary iPhone costing $1,000 or more, but that will not help the sales of their iPhone at the moment. In addition, the pause could also be delayed. Maybe into a new fiscal year.

 

 

What is an electric car actually? It is a smart phone with four wheels, because there aren`t much difference from an electric car and a smart phone. And who can enter the auto industry better than Apple?

Apple have everything they need to design a brand new electric car. They have more than enough much-needed software know-how and the company is already working with car companies on CarPlay. They have $150 billion of net cash and $50 billion of free cash flows annually.

Apple compete with Google and Microsoft and it will be very disruptive when they all enters the car industry with its brand new electric cars.

Whats funny to see is that these companies are not car companies but rather software companies. It speaks for itself. Apple is a strong brand with many fans worldwide, and Apple Car can take a large share in the auto market.

Tim Cook said in June this year that Apple has autonomous car ambitions. Apple is working to build self-driving car technology, referring to the endeavor as “the mother of all AI projects”.

But it seems like Google are leading. In December, Google launched Waymo, wich is “a new way forward in mobility.” So far, they have more than 2 million miles of public-roadway testing for its vehicles.

What will happen if Apple buy Tesla? They could quickly become a leader, but Elon Musk laughs off the idea of Apple buying Tesla. But earlier this year, Musk said “Never say never to Apple buying Tesla”.

Apple have a cash hoard of more than $250 billion, and that is giving them the opportunity to spend some of it for acquisitions or buybacks.

We know that Elon Musk earlier this year had a meeting with acquisitions chief at Apple and news regarding this case would be a bomb in the stock market.

Apple Inc is expected to report earnings on Tuesday August 01 after market close. Earnings forecast for the quarter is $1,57 versus $1,42 for the same quarter last year.

 

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.

Advertisements

Leave a comment

Filed under Stocks

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.

Leave a comment

Filed under Stocks

Tesla wants to sell solar panels, batteries, and electric cars under the same umbrella

Tesla is reporting Q2 this week, and big things have happened lately. On Monday we can see that Tesla`s share price is falling, so why is the shares falling this time? CEO Elon Mush have made a deal with SolarCity.

Tesla and SolarCity are both cash-burning companies, and the agreement to merge gives Tesla`s shareholders more risk. The shareholders at SolarCity will receive 0,11 Tesla shares for each SolarCity shares if the deal goes through.

 

tesla-solarcity

I used the terms «goes through» because the deal is not done yet. This is why investors should be cautious about this deal right now. The deal must be approved by a majority of shareholders in both firms.

Elon Musk and Tesla said on Monday that SolarCity and Tesla can offer residential, commercial and grid-scale integrated solar and energy storage products. These products will «improve the way that energy is generated stored and consumed,» Tesla said.

Tesla also said on Monday that combining Tesla and SolarCity could save $150 million or more in its first full year after closing.

The deal was first announced in late June, and this is a $2,6 billion deal. We have super-humans on this planet and Elon Musk is one of them. What is he thinking with this acquisition? He will try to create a company that sells solar panels, batteries, and electric cars under the same umbrella.

Tesla has spent a lot of time and money on producing its Model S and Model X cars, and now they are spending a lot of time and money on its Gigafactory outside of Reno, Nevada. Elon Musk has earlier said that he thinks Tesla and SolarCity could create a trillion-dollar company.

The deal is expected to be close in Q4 this year if the deal is approved by regulators and independent shareholders.

Tesla have underperformed the S&P 500 so far in 2016. While S&P 500 is up 6%, Musk`s company is down 4%. Tesla is down about $2% on Monday, while SolarCity have plummeted about $7%.

The company reported a loss of 48 cents in the same period last year, and analysts reports an adjusted loss of 56 cents this time, which is much more than last time.

The sales are expected to reach $1,60 billion in the quarter, compared with $1,20 billion in the same period last year, but they are still burning cash.

Tesla will report Q2 earnings on Wednesday after the market closes.

 

asphalt

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.

Leave a comment

Filed under Stocks

Tesla plans to sell 400 000 Model 3 for under $35,000 each

Tesla is a great vehicle, but the stock is not among my top ten favorite stocks. It`s expensive to build vehicles in a very competitive industry which means they are burning a lot of money with a high cost.

Tesla will report results on Wednesday, May 4, 2016, after the bell.

tesla

Tesla plans to sell Model 3 to the mass-market in 2017, and the price is set to $35,000 and have already 400,000 preorders. That sounds good, but investors are concerned about their ability to deliver.

The company guided for about 80,000 – 90,000 deliveries of their Model X and Model S last year, but we all know that this was too optimistic. In 2016, they delivered a record 50,000 vehicles but failed to meet volume expectations the company set earlier in the year.

Tesla is still aiming to scale production up to 500,000 vehicles per year by 2020, and is now on the hook to deliver 400k of one model, with production starting next year. Model 3 will come with lower margins.

Model 3 comes on top of Model X and Model S, and a third model will keep Tesla`s profits in the red for the foreseeable future. Operating expenses currently accounts for almost 50% of their revenue.

Large amounts of money is already spent in launching their first SUV and building out a sustainable battery. As production ramps up for each of these models, energy credits from green technology are expected to shrink proportionally to sales growth.

Estimize call for EPS of $-0,51, which is 1 cent higher than Wall Street, while revenue estimates of $1,60B are just slightly above the sell-sides $1,59B. The crowd has been bearish on Teslas profitability, moving EPS estimates down -326% since the Q4 report, now expecting earnings to decline 10% on a YoY basis.

Revenue estimates have also been ratcheted down by 8% but are expected to grow 47% from the year-ago period.

Investors are waiting for a forward-looking guidance on Wednesday. Not only Q1 results.

 

skjold5

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.

Leave a comment

Filed under Uncategorized

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.»

Tesla-Model-X

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.

wallboard

 

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.

Leave a comment

Filed under Stocks