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

Simon Alvarez

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Posted on June 6, 2019

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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Next-gen Tesla Model S/X rumored to have 3 electric motors, 400+ mile range

Simon Alvarez

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Posted on June 6, 2019

In a recent report, news publication CNBC noted that Tesla is rejiggering parts of its Fremont factory to make way for both the production of the Model S and X refresh and the Model Y. According to the publication, the information about Tesla’s updated Model S and X vehicles was related by multiple sources.

Just recently, some details of Tesla’s Model S and Model X refresh were shared by a Tesla insider to owner-enthusiast YouTube channel Like Tesla. In a short video, Kim, the channel’s host, outlined a number of details that the Tesla insider shared about potential improvements coming to the Model S and Model X. These include updates to the flagship vehicles’ motors, batteries, and charging systems, to name a few.

First off, the Model S and Model X refresh that the electric car maker is preparing to introduce later this year will potentially feature a tri-motor design, with one small motor in the front and two larger motors at the rear. The upcoming vehicles will further establish Tesla’s lead in terms of range as well, with the Model S refresh reportedly going for an EPA rating north of 400 miles (644 km) per charge, and the Model X nearing the 400-mile per charge mark.

The refreshed flagship vehicles will potentially be fitted with larger and lighter battery packs, which will provide a bit of increased performance and even more range. Tesla is reportedly adopting a new cooling system for the Model S and Model X refresh’s motors and batteries too. These new cooling systems are currently being tested under extreme heat in areas such as the Mojave Desert and Death Valley, according to the Tesla insider.

The specifics of the Model S and Model X refresh’s updated batteries were not disclosed by the Tesla insider, though it was mentioned that the upcoming vehicles would be compatible with the Supercharger V3 Network. This should allow the flagship sedan and SUV to charge at 250 kW, just like its smaller sibling, the Model 3. The refreshed Model S and Model X are reportedly expected to be unveiled sometime later this year.

While Elon Musk has largely downplayed a potential refresh for the Model S and Model X, the company has been taking active steps to improve its flagship vehicles. Last April, Tesla rolled out updates to the flagship sedan and SUV, with the latter being given a range of 370 miles per charge, and both vehicles receiving a completely revamped adaptive suspension setup. Perhaps Tesla is preparing to feature the refreshed Model S and Model X another in another surprise reveal at the Tesla pickup truck reveal? One can only hope.

Watch Like Tesla’s video to get the lowdown on Tesla’s potential Model S and Model X refresh below.

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Next-gen Tesla Model S/X rumored to have 3 electric motors, 400+ mile range

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Tesla owner evades pickup truck ‘rolling coal’ on his Model 3

Simon Alvarez

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Posted on June 5, 2019

A Tesla owner recently came across a truck driver who might have been preparing a dirty surprise for his Model 3. While driving at Amar Road in West Covina, CA, Tesla Model 3 owner Jeff Esguerra noticed a white pickup truck behaving rather strangely. Seconds later, he found out why: the vehicle’s driver was apparently preparing to roll some coal on his electric sedan.

While it is difficult to determine the exact motivations of the pickup truck driver, the man behind the wheel of the vehicle did change lanes twice and slowed down significantly to let the Model 3 catch up before gunning it and blowing out thick, black smoke from his tailpipes. Later comments from the Model 3 owner also indicated that he noticed the pickup truck driver seemingly spotting his electric car from his rearview mirror before conducting the coal-rolling maneuver.

Fortunately for the Model 3 owner, he was able to change lanes just in time to avoid the pickup’s dirty surprise. Thanks to this, Esguerra was able to escape the thick, black clouds of smoke that came out of the large vehicle. The footage of the incident was also shared online, where it has resulted in debates about whether or not the pickup truck driver intentionally tried to roll coal on the Model 3, or if the event happened by accident.

Rolling coal involves the practice of intentionally blowing out excessive amounts of smoke from a diesel-powered vehicle. This is made possible by specifically modifying a truck’s motor to allow increased amounts of fuel to enter the engine. Other coal rolling enthusiasts take this concept further, with some even removing the particulate filter of their vehicles to increase the amount of smoke emitted by their trucks.

While arguably dirty, harmful for the environment, and even dangerous (vehicles that are coal-rolled lose their visibility due to all the black smoke), the practice has become some form of subculture among people that are either opposed to the rise of electric vehicles, or at least skeptical of climate change. This has caused green vehicles such as the Toyota Prius to become a popular target for coal rollers. Unfortunately for the coal roller from West Covina, the Tesla Model 3 was no Prius, and its driver was alert enough to avoid being engulfed by thick black smoke.

Watch a Tesla Model 3 avoid a coal-rolling pickup truck in the video below.

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Tesla owner evades pickup truck ‘rolling coal’ on his Model 3

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