Tesla (TSLA) shakes off latest skepticism from Wall St as end-of-Q2 approaches

Simon Alvarez

By

Posted on June 27, 2019

Tesla shares (NASDAQ:TSLA) are proving quite resilient amidst a new round of skepticism from Wall Street. Just recently, Credit Suisse initiated coverage of Tesla, giving the electric car maker an “underperform” rating over what the firm believed would be the company’s difficulties when veteran automakers like Volkswagen enter the electric vehicle market.

Credit Suisse analyst Dan Levy started his TSLA coverage with a $189 price target for the company, which is about 15% lower than the stock’s closing price on Wednesday. Levy noted that his “underperform” rating is based on the argument that TSLA stock does not reflect key profit risks at its current levels. The analyst added that while Tesla is indeed leading in areas like electrification and software that will “define the future of carmaking,” it is likely to “settle as niche carmaker” amidst the arrival of more experienced competitors.

The Credit Suisse analyst noted that Volkswagen is the very definition of an industry incumbent, being around in the market for a very long time. The company also sold over 40 times Tesla’s volume in 2018, showing the vast gap between the two companies. With these in mind, Levy stated that Tesla is a “small newcomer to an industry which has historically had extremely high barriers to entry.”

“To best understand Tesla’s prospects in its push for electric vehicles (EV) proliferation, we believe it’s worthwhile to compare it to an auto industry incumbent – most appropriately Volkswagen (VW)… With both Tesla and VW committed to EV proliferation, the Tesla vs. VW debate could be relevant for the next decade or more. Both automakers are treating the long-term industry shift to vehicle electrification as an existential matter. Yet they are coming from vastly different positions… Tesla currently leads in areas that will likely define the future of carmaking. Yet it faces risks ahead – reflected in our below-consensus estimates. And despite growth ahead, we believe Tesla is likely to settle as a niche automaker,” Levy wrote.

Quite interestingly, Credit Suisse also initiated coverage on two American automakers: Ford and GM. Both veteran companies received an “outperform” rating from the analyst, describing Ford as a company showing “early signs of improvement with more to come” and GM as “one of the best players in our coverage.” For his part, Levy noted that despite his “underperform” rating on TSLA and the myriad challenges facing the company, Tesla “deserves due credit.”

Tesla is currently conducting its end-of-quarter push, delivering as many vehicles to customers before the end of June. A recently-leaked email from Elon Musk has also indicated that the company is “on track” to set records this quarter, but the company needs to “go all out” in order to complete vehicle deliveries.

As of writing, Tesla stock is trading +0.11% at $219.51 per share.

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

Tesla (TSLA) shakes off latest skepticism from Wall St as end-of-Q2 approaches

<!–

View Comments

–>

Source

Car Builds – All Black Stealth BMW M3

Here we have had the luxury of talking to the owner of this amazingly fierce modified BMW M3. Haydn has owned this car for a few years and purchased it partially modified, with the intent of finishing it off, creating the perfect M3.

You Can Own This Exact Modified BMW M3

Haydn’s all black M3 is currently for sale in our listings, so if you like what you see here it could be your next car. And what a car you would be buying! You can view the full sale listing here – Modified BMW M3 For Sale

This BMW M3 is the last generation of BMW M cars to have a naturally aspirated V8 powering it. And this engine produces a sound that non of its turbo-charged successors have been able to replicate.

We had the chance to catch up with Haydn, where we spoke about his motivations for purchasing an E93 M3. And his experience owning and driving this car. Check out what Haydn has to say below about his clean M3 build.

Question – What made you want to modify your M3?

Haydn – Since I was very young I’ve lived and breathed cars, my dad owning a replica AC cobra started the love. Spending evenings helping restore and repair it had me hooked. The adrenaline pumping through you after hearing the big V8 shouting from the side pipes is a memory engrained within me.

Question – How did you make the decision to purchase a BMW M3 over other cars?

Haydn – My BMW has been the first modified car I have owned, the biggest requirement was having a V8 under the bonnet. The M3 is such an iconic car I’ve always been a huge fan of them.

Everyone always says don’t drive your dream cars but I have not regretted it whatsoever. The modifications that have been made to the car have added to its mean look and really set it off.

Question – With that in mind, which aftermarket parts have you used in the build?

Haydn – When I bought the car the main expensive features had been carried out, I wanted to have a car that I could finish off due to working long hours.

It had been tuned by AMD in London. Having test driven a couple of M3’s the gear changes in this one after the map were a lot quicker and smoother. The full custom exhaust had been fitted, it has an electric valve allowing you to adjust the flow. This has been amazing, giving you the option to either cruise along or be an absolute hooligan!

The other work that has been carried out, spacers have been fitted along with lowering springs. And this has made a big impact making it tighter round the corners and personally improving the stance.

It has an after market M-Sport body kit, carbon fibre lip, skirts, diffuser and wing. I went for a more subtle body kit as I believe it suits the cars lines better than some of the more extravagant kits you can get.

Question – What part of the car build are you most proud of?

Haydn – The part of the build that I am most proud of is the changing of suspension.

I love the way the car looks and feels. It was a job that was done with my dad, and it was lovely to do a job like that again with him!

Question – Tell me about the performance of the car?

Haydn – The performance of the car puts a huge smile on your face. After the remap it is running 427BHP and 293NW of torque.

Everyone knows that the M3 V8 revs up to 8 and a half thousand. With the valves open and the engine screaming, it is an experience you never forget. Despite being slighter lower on torque the engine just keeps pulling and you can’t help but creep up into triple figures, on the autobahn of course…

I chose to go for the DCT transmission as I have never had an automatic before. Flicking through the gears with the F1 style paddle shifters makes for a very enjoyable and race like experience.

Question – Do you show the car at events?

Haydn – I try to take the car to as many shows as possible, although I haven’t been to the huge events but rather a lot of smaller ones.

There is something enjoyable about parking up and looking around everyone’s pride and joys. I find the time people take perfecting there vehicles to be very inspiring. Some of the builds that you see, people have clearly spent years working on.

Source

Tesla is developing the means to start producing its own battery cells: sources

Simon Alvarez

By

Posted on June 26, 2019

Tesla is reportedly working on developing a means to produce its own battery cells for its electric vehicles and energy storage products. This update, which was related by several former and current Tesla employees to CNBC, provides yet another sign that the Silicon Valley-based company is looking to become as independent and vertically integrated as possible.

According to the publication’s sources, Tesla is currently conducting some of its battery cell research at a “skunkworks lab” located in the company’s Kato Road facility, which is situated just a few minutes away from the Fremont, CA factory, where the Model S, 3, and X are produced. The former and current employees also mentioned that Tesla’s battery R&D teams are focused on prototyping and designing advanced lithium-ion batteries, together with new equipment and processes that could open the doors for battery cell mass production.

Numerous advantages could result from Tesla producing its battery cells. The company, for one, could avoid constraints that have plagued it in the past. Having its own cell design could also lower costs, allowing the company to introduce vehicles that are more affordable than the Standard Range Model 3, while giving a performance and range boost for the company’s vehicle lineup.

The publication’s sources did not mention if Tesla is integrating or utilizing some of Maxwell’s technologies in its original battery cell design and manufacturing plans. Nevertheless, Musk did note during Tesla’s annual shareholder meeting that it would be holding a battery and powertrain day later this year to explain how Maxwell’s innovations will be utilized.

Tesla CTO JB Straubel and VP for Technology Drew Baglino, who joined Musk onstage during the shareholder meeting, also spoke about the company’s need to secure large-scale battery cell production. “It’s more obvious now than I think it ever was, we need a large-scale solution to cell production,” Straubel said. In a following comment, Baglino added that “We’re not sitting idly by. We’re taking all the moves required to be masters of our own destiny here, technologically and otherwise. I think through all the experience we’ve developed with partners and otherwise, we will have solutions for this.”

While Tesla’s production of its battery cells would make it more independent of Panasonic, the two companies would likely retain a partnership for years to come. The Japanese firm, after all, has already invested heavily in Gigafactory 1, and during a previous Q&A session, Panasonic Corporation President Kazuhiro Tsuga debunked speculations alleging that the company’s partnership with Tesla is on the rocks. “We are making sure that we have a partnership relationship, not a supplier relationship… We continue to have (a) very solid, very strong relationship with Tesla,” Tsuga said.

Tesla is developing the means to start producing its own battery cells: sources

<!–

View Comments

–>

Source