Elon Musk’s Tesla, SpaceX top list of most attractive employers for engineering students

Employer branding specialist Universum has released its 2019 rankings for the most attractive employers in the United States. Based on the firm’s findings, which were tabulated from a survey of tens of thousands of students from hundreds of universities, it appears that two of Elon Musk’s companies, SpaceX and Tesla, are perceived by engineering students as the best employers in the country.

SpaceX, Elon Musk’s private space company, was dubbed by engineering students as the No. 1 employer they wish to work for, dethroning NASA, which topped last year’s rankings. Among the respondents of Universum’s survey, 20.7% of engineering students listed the disruptive space firm among their Top 5 ideal companies. SpaceX moved up significantly in this year’s rankings too, as the company was ranked No. 3 in the branding firm’s survey in 2018.

Tesla stood proudly at No. 2 in Universum’s rankings, with18.7% of engineering students listing the electric car maker as one of their Top 5 ideal employers. Tesla was also ranked 2nd in the branding firm’s 2018 surveys, which all but highlights the strength of the company’s brand. This is all the more impressive if one were to consider the noise from skeptics surrounding the company, which have largely dominated the news cycle around Tesla for the past months.

Universum’s list of most attractive employers for engineering students in 2019. (Credit: Universum)

Both Tesla and SpaceX are known for being workplaces that are incredibly challenging. During the early days of SpaceX, the company’s recruiting pitch was simple: it was the “special forces” in the space industry. This pitch, which all but highlights the hard work and dedication required of all SpaceX employees, all but became a beacon that attracted the most dedicated workers. As history would show, being special forces has its merits, as SpaceX currently offers employees the opportunity to work for a company that quite literally is leading the private space race.

Tesla, for its part, is known to be just as challenging as SpaceX. While one could argue that electric car manufacturing is not as complicated as rocket science, the sheer scale of Tesla’s operations is enough to keep every employee busy. As noted by a study from Handshake, a student career-services app, last year, this intense work culture is actually among the reasons why applicants consider the electric car maker as an attractive place of employment.

One common denominator between SpaceX and Tesla that is likely compelling for job-seekers is CEO Elon Musk, whose style of leadership is equal parts daunting and inspiring. While Musk is known to be a leader who demands a lot from his employees, he is also a leader that prefers to stay in the front lines. During the challenging days of Tesla’s Model X and Model 3 production ramps, Musk slept in the company’s Fremont factory, just so he could address any issues in the facility as they arose. Anecdotes from the Tesla community during the construction of GA4 also indicate that Musk was among the workers torquing bolts in the new Model 3 assembly line.

This extends to Musk’s use of Tesla’s technologies as well. As indicated in a report from The Information that featured accounts from members of Tesla’s Autopilot team, Musk uses himself as a test subject for the company’s driver-assist software. Musk’s personal vehicle is loaded with pre-released “development build” Autopilot versions, which allow him to push the driver-assist software to its limits. This practice has allowed Tesla to quickly spot Autopilot’s areas for improvement, though according to the publication’s sources, it has also resulted in Musk finding himself in “situations that many of us wouldn’t want to be in.”

Elon Musk’s Tesla, SpaceX top list of most attractive employers for engineering students

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Tesla maintains gains amid Jim Chanos’ renewed criticisms against TSLA

Tesla stock (NASDAQ:TSLA) continued to recover on Friday, despite noted short-seller Jim Chanos declaring the company’s vehicles as “poorly made.” Speaking recently in front of investors and businessmen, Chanos blasted Tesla for doing away with the auto industry’s established conventions, at one point even suggesting that that people probably buy the company’s electric cars simply because of Elon Musk.

“Musk is re-learning the hard lessons automakers in Detroit learned 100 years ago. It’s one thing to manufacture cars, but Detroit learned the hard way they didn’t want to be at the nexus. Decades ago, Detroit’s big car brands decided to let the dealers do that, and focus on manufacturing and updating models. Musk is now dealing with all of the things car makers have had to deal with…Tesla’s idea was to tear all that up and start from scratch, but sales and services are coming back in a hard way,” Chanos said, arguing that while Musk has created a “very sexy car” that is popular with many drivers, the vehicles are “turning out to be a poorly made car.”

When asked if he would view Tesla at a more positive light if Musk were to resign, Chanos stated that he doesn’t think the CEO can. “He’s the brand… it’s all about Elon Musk. I think a lot of people buy the car because he’s the brand,” the short-seller said. Chanos also scoffed at the idea of Tesla offering own insurance service, remarking “You have to be f-ing kidding me.”

While the noted short-seller has returned to air his criticisms against Tesla, a number of Wall St analysts are beginning to adopt a more positive stance on the electric car maker. Among these is Piper Jaffray analyst Alexander Potter, who stated in a recent note on Friday that concerns about weakening demand for the Model 3, which have pushed the stock down about 40% since the start of the year, are “overdone.”

The analyst mentioned that TSLA stock had been overwhelmed by bearish sentiments since the company released its first-quarter delivery results, which were hurt by logistical bottlenecks. “In a nutshell, we think bears are using weak Q1 deliveries to support a ‘doomsday’ thesis where weak demand drives factory under-utilization, margin degradation, and even insolvency. But the underlying premise (weak demand) requires defending — and so far, convincing evidence has yet to emerge,” Potter wrote.

Potter also highlighted that the real opportunity for the Model 3 is likely bigger than what some clients actually understand, particularly as the vehicle is not only competing with luxury vehicles. “Our analysis suggests that 54% of Model 3 demand should come from consumers who would have chosen mass-market vehicles. This mirrors Tesla’s own trade-in data,” the analyst added.

The Piper Jaffray analyst currently has an “overweight” rating for TSLA stock, as well as an optimistic $396 price target on the company.

Tesla’s first quarter might have been challenging, but indications have emerged pointing to the company ending the second quarter in a positive note. A leaked email from Elon Musk, for one, had suggested that Tesla might be able to meet, or even exceed, the company’s record deliveries in Q4 2018, a time when over 90,000 vehicles were delivered to customers. The company is also rolling out a compelling leasing program for the Model 3, which will likely make the electric sedan even more attractive to potential customers.

As of writing, Tesla stock is trading +0.36% at $206.70 per share.

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

Tesla maintains gains amid Jim Chanos’ renewed criticisms against TSLA

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Tesla (TSLA) rebounds as Model 3 sales start crushing ‘demand problem’ narrative

Tesla stock (NASDAQ:TSLA) continued its recovery on Thursday amid Wall Street’s seemingly improving sentiments on the company and the existing demand for its vehicles, particularly the Model 3. Far from the incredibly negative coverage that Tesla received in recent weeks, analysts such as Morgan Stanley’s Adam Jonas have revised their stance on the electric car maker, stating that Tesla could be poised to pleasantly surprise in the second quarter.

In a note to investors on Wednesday, Jonas stated that the month of May saw Tesla continue to “to extend its lead vs. a still-small group of true electric vehicle competitors.” The analyst added that Tesla’s estimated total US sales in May, which is speculated to be around 11,300 vehicles, was 2.6 times the combined total of competitors such as the Audi e-tron, Jaguar I-PACE, BMW i3, Nissan Leaf, and the Chevy Bolt EV, a vehicle once-dubbed as a potential “Tesla Killer.”

Jonas’ note on Wednesday struck a different tone than his previous bearish note on the company, where he gave TSLA stock a “worst case” price target of just $10 per share. During his previous note, Jonas remarked that Tesla is no longer seen as a growth story, but rather, a “distressed credit and restructuring story.” Most of these sentiments were quite absent in the analyst’s note on Wednesday.

JMP Securities analysts Joseph Osha and Hilary Cauley also adopted an optimistic stance on Tesla in a recent note to investors. According to the analysts, Tesla’s performance from April to May, particularly with regards to Model 3 registrations, were encouraging. “More Model 3s were registered in April and May than during all of the first quarter. It is evident that Tesla’s Q2 volume should recover significantly from Q1,” the analysts wrote.

With his more optimistic stance, Morgan Stanley expects Tesla to deliver between 360,000 to 400,000 vehicles this year, which represents an “increase of approximately 45% to 65% compared to 2018,” according to the analyst. JMP, for its part, noted that it expects Tesla’s 2019 deliveries to “very slightly to 378,900 units from 379,600,” in relation to the increasing volume of lower-priced vehicles such as the Standard Range Plus Model 3 and the potential decline in higher-end electric cars like the Model S and Model X.

Tesla’s steep decline over the past weeks centered in no small part on pervading concerns about the alleged demand problems being experienced by the company’s vehicles. With sales figures showing the opposite, and with reports from Tesla owners hinting that the company is currently putting preference to custom orders, it appears that the winds are now changing for the electric car maker.  Eddie Yoon, a think tank and advisory firm founder, recently observed that the current state of TSLA stock resembles that of Netflix back in 2011, right before the streaming giant started an eight-year rise that propelled it to record heights.

As of writing, Tesla stock is trading +5.55% at $207.51 per share.

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

Tesla (TSLA) rebounds as Model 3 sales start crushing ‘demand problem’ narrative

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