Tesla’s China Gigafactory will be the game-changer of 2020, predicts analyst

Joey Klender

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Posted on January 3, 2020

Tesla (NASDAQ:TSLA) has managed to rip through its self-imposed goals for 2019, and 2020 could prove to be even bigger. As the electric car maker tackles yet another year, Wall Street analyst Dan Ives of Los Angeles-based Wealth Management company Wedbush Securities believes that Tesla’s Gigafactory 3 will be one of the company’s most important assets in 2020.

“With the first Chinese made Model 3s delivered over the past week and Giga 3 on pace to produce over 1,000 cars per week, the bull/bear debate will center around ramping production and demand to the 100k/150k level annually in China and how quick this dynamic will ramp,” Ives wrote in a note on January 2, just a day before Tesla released its Q4 and Full-Year delivery and production figures. 

Tesla broke ground on Gigafactory 3 in Shanghai in early 2019. Less than a year later, the company is already producing sales-ready Tesla Model 3s and delivering them to Tesla employees. The company announced that its second round of deliveries is set for January 7. This next segment of deliveries for the Made-in-China Model 3 will give non-Tesla employees deliveries of the company’s most affordable sedan.

Tesla has already reached a production rate of 1,500 Model 3s at Gigafactory 3 during a six-day workweek, though more recent reports from China reveal that the massive Shanghai-based facility has reached a run-rate of 3,000 vehicles a week.

Tesla’s stock recently broke the infamous $420 per share barrier and was trading as high as $453 per share on January 3. Ultimately, Ives believes the company’s stock could go even higher in 2020 due to Gigafactory 3, with the facility’s performance and production being worth an additional $75 to $100 to TSLA shares. This could prove to be Tesla’s opportunity to cement itself as the most valuable car manufacturer in the United States.

Tesla’s Q4 2019 report stated the company produced almost 105,000 vehicles and delivered around 112,000 from October to December 2019. That’s a 50% increase from the previous year. Over 92,000 of the 112,000 delivered vehicles were Tesla Model 3s.

As Gigafactory 3 production continues to ramp up and Tesla begins to prepare for the first construction phases of Gigafactory 4 in Berlin, Germany, the electric car manufacturer has plenty to be excited about. As for Ives, he believes that Tesla’s performance in China and Europe will be key indicators on whether the company can sustain the level of success they realized in the final months of 2019.

Tesla stock ended Friday’s trading up 2.96% at $443.01 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla’s China Gigafactory will be the game-changer of 2020, predicts analyst

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Tesla’s free Autopilot battles BMW’s best driver-assist tech in head-to-head test

Joey Klender

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Posted on January 2, 2020

A Tesla Model 3’s Standard Range Plus equipped with the company’s Autopilot feature was recently put to the test against a worthy competitor: the BMW M850i Gran Coupe, a car that combines luxury and performance with the German automaker’s own premium driver-assist software.

YouTube’s Ash Davies on Cars decided to compare the two vehicles and their respective driver-assist software as a way to see how one of the cheapest Tesla vehicles available would fare against the tech of one of the most luxurious and costly BMW vehicles that money could buy. The Model 3 was equipped with the company’s basic Autopilot, a feature that now comes standard on all of Tesla’s vehicles. This means the car was equipped with the ability to steer, accelerate, and brake for other vehicles and passengers in its lane.

The BMW M850i Gran Coupe, on the other hand, is equipped with an optional Driver Assistance Professional Package that gives drivers more awareness through a series of safety features like blind-spot notifications, cross-traffic alerts, lane-keeping steering assist and parking assistance. It also includes a feature that’s somewhat similar to Tesla Autopilot called Extended Traffic Jam Assistant, which helps the driver operate the vehicle in congested areas of the road.

Initially, Davies took the Model 3 out for a drive on his local freeway. Impressed by the vehicle’s ability to control and maneuver without incident, he stated he had no worries about the car driving itself, mostly due to the Driving Visualization feature available on the vehicle’s 15″ display screen. The reviewer noted that the Model 3’s basic Autopilot, while lacking the finer features found in Tesla’s Full Self-Driving suite, already behaves a lot like a human driver. The driver-assist system is also so refined that it’s very easy to trust Autopilot.

Davies then hopped in the six-figure BMW, explaining that the best tech of veteran car manufacturers are usually found in the top end models like the M805i Grand Coupe. While Davies took particular note of the vehicle’s luxurious features, he was not that impressed with the car’s actual tech. Even with its driver-assist feature active, for example, the vehicle’s display does not render any other cars on the road, unlike Tesla’s standard Autopilot.

He also notes that the Driver Assistance package is more like an adaptive cruise control than an Autopilot feature. After unsuccessfully attempting a lane change, Davies opted to test how well the vehicle stops when faced with traffic. The BMW slowed down, but it did so with such abruptness that the reviewer stated that “It slowed down with all the force of a car that thought it was about to have a crash.”

Tesla’s industry-leading Autopilot technology is one of many reasons the electric car maker continues to solidify its reputation as one the most innovative automotive company in the world. As told by Davies in his video, it is apparent Tesla’s Autopilot feature is easily outperforming the much more expensive features on a luxury car like a BMW. Perhaps, the reviewer noted, Tesla is simply a company that is very good with software while veteran automakers like BMW are good with hardware. And when it comes to driver-assist technology, the best software will likely win.

You can watch Ash Davies on Cars‘ comparison of Tesla’s Autopilot and BMW’s driver-assist features in the video below.

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Tesla’s free Autopilot battles BMW’s best driver-assist tech in head-to-head test

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Tesla just gave birth to the next generation of supporters

Simon Alvarez

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Posted on January 1, 2020

December 31, 2019 held significance for Tesla, as it marked the end of another quarter. The day determined if the company could follow its momentum from Q3 2019 and turn in another profit. It also marked the final day when the $1875 federal tax credit could be applied. Yet, perhaps more importantly, the end of 2019 marked the day when Tesla potentially gained thousands upon thousands of new supporters and future influencers. 

On New Year’s Eve, numerous dedicated Tesla owners decided to help out the electric car maker in its push to deliver as many cars as possible. Some provided orientations to new owners about the basic features and functions of their new electric vehicles. Others provided pointers about configuring their Teslas. Just like the past year, Tesla’s end-of-year deliveries were powered, at least to some degree, by regular owners who just happen to be passionate about their vehicles. 

In Fremont, for example, large groups of people gathered on New Year’s Eve to take delivery of their cars. Unfortunately, the DMV caused a delay with issuing out license numbers, creating a backlog for many would-be owners. As the wait times turned to hours, Tesla owner-volunteers stepped up. Tesla Raj, a Model 3 owner who started a YouTube channel about his ownership experience, described how owner-volunteers contributed. 

“We helped by pulling groups of people from the showroom to do orientations where we covered the car inside and out. This helped ease the stress and pain in the wait… Lots were very pleased that we were volunteering, and they were interested in who we are and why we were doing it. We had a member following customers to their car for 1-on-1 training, and I was in the lobby gathering groups of people for a walkthrough-orientation. They loved it. They felt a sense of the Tesla community and what we stand for,” Raj said. 

True to his tweets, Tesla CEO Elon Musk also dropped by the Fremont site to help deliver cars to new owners. His mom, Maye, also paid a visit to the delivery center. Amidst all the waiting that resulted mostly from the DMV delay, Musk’s presence helped boost the morale of the Tesla employees. It also eased the patience of many owners looking to receive their cars. Arash Malek, a Model 3 owner-videographer who also volunteered his time on New Year’s Eve, described the atmosphere after the CEO’s arrival. 

“Before Elon came, people were getting really frustrated. Some people had been waiting all day. But soon as Elon arrived, you could feel the energy change. I heard an employee behind me say, ‘This is why we love working for Tesla.’ It was pretty awesome and inspiring to see the CEO eager to help deliver cars. Raj and I along with other members of the (Tesla Owners) club were giving future Model 3 owners full tutorials on how to use their cars. Everyone was genuinely soo excited! I had some people ask me why am I volunteering to help on New Years’ Eve. I told them that if it was any other car company, I wouldn’t, but the Tesla community is so awesome that I felt honored to be able to help the mission,” Malek said.

Tesla would go on to deliver cars to new customers until the final moments of 2019, and reports from the community on social media suggested that deliveries happened even after midnight. Some have mentioned that their deliveries were pushed to the next few days as well. Yet, despite these challenges and tests of patience, the Tesla community did grow significantly on the 31st of December, and a lot of it was due to the thousands of volunteers who dedicated their time to help out newcomers to the Tesla community. Thousands, after all, saw a glimpse of the Tesla community and how it functioned, and that’s really what matters the most. 

Seeing such a close-knit community of owners-enthusiasts and a driven CEO who spends a holiday with his employees is a pretty unique experience. Very few companies in the world have experienced something similar. The latest iPhones from Apple may invite long lines of waiting customers, but rarely does one see a longtime iOS user volunteering their time to help new owners with their devices. This is even more notable with other car brands. When was the last time avid Ford or GM enthusiasts volunteered at a dealership to help hand over cars? Such events would be difficult to recall. 

From the Tesla volunteer-powered delivery push to Elon Musk’s contribution to the year-end deliveries, there is a good chance that a couple dozen of new owners in Fremont were inspired enough to be passionate community members themselves. Perhaps some would start their own Tesla-themed YouTube channels. Maybe some with start Tesla aftermarket businesses. Perhaps some will love their car enough to the point where they recommend Tesla to their close friends and family members. This is pretty much how the Tesla community has grown over the years. It’s just happening now at a far quicker rate, with the adoption of higher-volume vehicles like the Model 3.

Tesla just gave birth to the next generation of supporters

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