http://www.proactiveinvestors.com Proactiveinvestors RSS feed en Sun, 18 Feb 2018 02:01:00 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tesla’s Chinese expansion plans under threat from standoff over Shanghai factory ]]> http://www.proactiveinvestors.com/companies/news/191644/teslas-chinese-expansion-plans-under-threat-from-standoff-over-shanghai-factory-191644.html Tesla Inc’s (NASDAQ:TSLA) ambitious expansion plans in China are coming under threat, according to reports, as the electric car maker can’t agree a deal to open a factory in the country.

Elon Musk has been trying to reach an agreement with the Chinese government since last summer but has so far been unsuccessful, with Bloomberg reporting that the two sides disagree on the ownership structure for a proposed factory.

READ: Tesla lost US$500,000 every HOUR in final quarter of 2017

At the moment, every foreign automaker must partner with Chinese companies in order to manufacture locally, but Tesla wants to own the factory completely.

If a deal can’t be reached, the US car maker could miss out on the surging demand for electric vehicles as President Xi Jinping’s administration hand out billions of dollars in subsidies to try to entice consumers away from air polluting gas guzzlers.

Tesla currently sells into China but each car is subject to a hefty 25% import tax, taking the sticker price beyond the means of most consumers and allowing cheaper models and domestic rivals to take a foothold in the lucrative market.

Citing people close to the negotiations, Bloomberg said the current stalemate doesn’t mean Tesla won’t strike a deal at some point in the future though.

Tesla declined to comment on its negotiations.

READ: Tesla sold just 32 cars in Hong Kong in the final nine months of 2017

Shares in the car maker were broadly flat in pre-market trade on Wednesday at US$325.

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Wed, 14 Feb 2018 08:10:00 -0500 http://www.proactiveinvestors.com/companies/news/191644/teslas-chinese-expansion-plans-under-threat-from-standoff-over-shanghai-factory-191644.html
<![CDATA[News - Tesla, Yum China Holdings, iRobot Corp and more - AFTER HOURS ]]> http://www.proactiveinvestors.com/companies/news/191383/tesla-yum-china-holdings-irobot-corp-and-more-after-hours-191383.html Wall Street shares closed lower and after the bell, electric car giant Tesla Inc (NASDAQ:TSLA) was among the big stories trending.

Elon Musk's Tesla saw shares drop 1.48% to US$339.90 after the bell.

It came after revenues were just higher than estimates, while EPS (earnings per share) losses were lower than expected.

This quarter's (to December 31) cash burn was not as bad as predicted, although many analysts still consider it a risk.

Tesla also repeated its Model 3 production goals, expecting to still produce 5,000 Model 3s a week by the end of the second quarter.

 

Tesla says it is making progress on Model 3 production issues https://t.co/0w35zzU6gz pic.twitter.com/DaSaiuDzxu

— The Wall Street Journal (@WSJ) 8 February 2018

Elsewhere, iRobot Corp (NASDAQ:IRBT) shares sank almost 19% after the New York bell after the robot firm revealed that revenue had beaten Wall Street estimates, but EPS fell short.

Meanwhile, Yelp Inc (NYSE:YELP) shares fell almost 11% to US$40 in trading after the bell as the internet marketing company beat analysts' estimates on earnings and revenue.

Last but not least, shares in Yum China Holdings Inc (NYSE:YUMC) lost 4.85% to US$42.15 after the fast food firm announced financials that beat analysts' estimates.

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Thu, 08 Feb 2018 07:35:00 -0500 http://www.proactiveinvestors.com/companies/news/191383/tesla-yum-china-holdings-irobot-corp-and-more-after-hours-191383.html
<![CDATA[News - Tesla lost US$500,000 every HOUR in final quarter of 2017 ]]> http://www.proactiveinvestors.com/companies/news/191375/tesla-lost-us500000-every-hour-in-final-quarter-of-2017-191375.html Befitting of its boss’ latest venture, electric car maker Tesla Inc. (NASDAQ:TSLA) reported an astronomical loss in its fourth-quarter earnings late on Wednesday.

The company – founded and headed up by billionaire Elon Musk – saw losses rise to a record US$675.4mln (£487mln) in the three months ended December 31, compared with ‘just’ a US$121.3mln loss a year earlier.

That means Tesla lost, on average, almost US$500,000 every hour of every day during the quarter.

Investing heavily in operations

The Silicon Valley-based firm has been spending heavily as it rolls out its next generation of electric cars, including its Model 3 Sedan, a seriously rapid sports car and its semi-truck.

Most analysts think Tesla’s future hinges on the mass-produced Model 3, but production bottlenecks mean that it has consistently missed delivery targets since the first car rolled out of the factory last July.

“Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time,” the company said in an update to shareholders.

“What we can say with confidence is that we are taking many actions to systematically address bottlenecks and add capacity in places like the battery module line where we have experienced constraints, and these actions should result in our production rate significantly increasing during the rest of Q1 and through Q2.”

Outlook positive

Tesla said it would probably build about 2,500 Model 3s a week by the end of the March and that it plans to reach its goal of 5,000 a week by the end of the second quarter.

It did add a caveat by saying that “our prior experience on the Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time”.

But Tesla, which is yet to make a profit, was also keen to highlight the positives. Sales in the quarter jumped to US$3.29bn from US$2.28bn in the year-ago period, while it also hinted that it was heading towards operating profitability.

“At some point in 2018, we expect to begin generating positive quarterly operating income on a sustained basis.”

Full-year revenues jumped 55% year-on-year to US$11.8bn and Tesla said it expects 2018 sales to “significantly exceed” those achieved in 2017.

It also has plenty of money in the bank – US$3.4bn to be precise – which will allow the company to continue to invest heavily in its operations for a little while yet.

Tesla shares were down 0.9% to US$342 shortly after the opening bell in New York.

--Updates for share price--

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Thu, 08 Feb 2018 05:20:00 -0500 http://www.proactiveinvestors.com/companies/news/191375/tesla-lost-us500000-every-hour-in-final-quarter-of-2017-191375.html
<![CDATA[News - Tesla sold just 32 cars in Hong Kong in the final nine months of 2017 ]]> http://www.proactiveinvestors.com/companies/news/191156/tesla-sold-just-32-cars-in-hong-kong-in-the-final-nine-months-of-2017-191156.html Tesla Inc (NASDAQ:TSLA) sold just 32 cars in Hong Kong in the final nine months of 2017 as the government in the Chinese territory put a cap on generous tax breaks.

Hong Kong was once dubbed a “beacon city” by Tesla’s billionaire founder Elon Musk, who had previously stated it was the city with the highest number of Tesla cars per capita.

READ: Tesla faces competition for Model X after China's Nio releases car at half the price

Teslas are a constant sight on Hong Kong’s roads, with the tax breaks buoying sales of the electric cars in recent years.

Tax breaks slashed in March

But Hong Kong authorities slashed those waivers last March, which almost instantly doubled the price of a Tesla Model S 75D to US$132,000.

As a result, only 32 Teslas were registered in the city between April and December last year, down from almost 2,000 in the same period of 2016.

Other jurisdictions, such as Denmark, have also seen sharp declines in sales shortly after the removal of tax breaks.

Online reports claim that Elon Musk has sent a letter to Hong Kong chief executive Carrie Lam, warning that his firm would reduce its presence in the territory if previous tax credits for electric car buyers were not reinstated, although Tesla itself hasn’t commented on this.

Sales in first three months were good though​

Last year wasn’t a complete disaster for Tesla in Hong Kong, though.

A total of 2,939 Teslas were registered in March as customers raced to get their hands on electric cars before the waiver cap came in force on April 1.

That was more than the 2,807 vehicles that the company sold in the whole of 2016.

Tesla’s stock was down 2% to US$337 in pre-market trading.

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Mon, 05 Feb 2018 08:06:00 -0500 http://www.proactiveinvestors.com/companies/news/191156/tesla-sold-just-32-cars-in-hong-kong-in-the-final-nine-months-of-2017-191156.html
<![CDATA[News - Tesla to promote solar panels in nation's Home Depot network ]]> http://www.proactiveinvestors.com/companies/news/191087/tesla-to-promote-solar-panels-in-nation-s-home-depot-network-191087.html In its latest sales push, Tesla Inc (NASDAQ:TSLA) is hoping US punters will go solar.

The tech group, famously founded by the inimitable Elon Musk, is set to open small kiosks with its own staff, inside Home Depot stores.

There it will pitch its solar panels and Powerwall electricity storage devices to shoppers at the huge US  DIY chain.

Powerwall is designed to store electricity collected by a home's solar panels or purchased from the grid during off-peak hours.

If people own a Tesla vehicle, the product can also be used to supply power to a home in the case of an outage.

Some Home Depot stores already have kiosks set up, while all 800 US Home Depot locations should come on line later this year.

Tesla shares are up 0.44% in New York at US$350.46.

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Fri, 02 Feb 2018 09:47:00 -0500 http://www.proactiveinvestors.com/companies/news/191087/tesla-to-promote-solar-panels-in-nation-s-home-depot-network-191087.html
<![CDATA[News - Musk making hay with flamethrower sale ]]> http://www.proactiveinvestors.com/companies/news/190774/musk-making-hay-with-flamethrower-sale-190774.html Flaming Galahs! Is there anything Elon Musk won't peddle?

His Boring Company has now started selling flamethrowers for US$500 each with shipping beginning in the spring.

 

Elon Musk is selling flamethrowers ???? https://t.co/paxuxMcsaM pic.twitter.com/iIfziLMA2Q

— Bloomberg (@business) 29 January 2018

It was announced yesterday (Sunday) and Musk has already sold 7,000.

At the rate they’re selling, it’s safe he has surpassed the US$4mln mark (or 8,000 flamethrowers) and he is selling 20,000.

The billionaire last month said as a joke that when his company sold 50,000 hats, it would start selling flamethrowers. And now it has become reality - if there is such a thing in Musk world.

He reportedly said then United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) permits any flamethrower with a flame shorter than 10 feet, and said he would be "way more scared of a steak knife".

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Mon, 29 Jan 2018 11:21:00 -0500 http://www.proactiveinvestors.com/companies/news/190774/musk-making-hay-with-flamethrower-sale-190774.html
<![CDATA[News - Tesla employees expect further Model 3 delays due to battery production issues ]]> http://www.proactiveinvestors.com/companies/news/190696/tesla-employees-expect-further-model-3-delays-due-to-battery-production-issues-190696.html Tesla Inc. (NASDAQ:TSLA) employees are reportedly expecting further delays to the new Model 3 due to problems with battery production at the company’s Gigafactory in Sparks, Nevada.

Several employees and former workers told CNBC that Tesla has needed to make some of the batteries by hand and borrow staff from one of its suppliers to help with manual assembly.

READ: Tesla shifts sharply into reverse after cutting production guidance for Model 3

The staff also said many of the company's quality control workers were relatively inexperienced, make sloppy calculations and don't know how to identify flaws.

Tesla had already delayed production of the Model 3, its first mass-market electric vehicle, due to issues at the Gigafactory it launched last year.

In November, chief executive Elon Musk said in an earnings call that Tesla was working to fix the manufacturing issues that came to light a month earlier.

Mass production of batteries no closer

More than 400,000 people have already reserved the Model 3 by putting down a US$1,000 refundable fee.

Responding to the report, a Tesla spokesperson told CNBC: "Until we reach full production, by definition some elements of the production process will be more manual."

“This is something Elon and [CTO] JB [Straubel] discussed extensively on our Q3 earnings call, and it has no impact on the quality or safety of the batteries we're producing."

However, sources told CNBC that Tesla is still no closer to mass producing batteries for the basic US$35,000 model of the sedan.

Manual production could be dangerous, Tesla engineers warn

Two Tesla engineers also said making the batteries by hand could lead to a hazard.

Batteries that are shipped without the minimum gap required between lithium-ion cells could cause them to short out or catch fire, they said.

A Tesla spokesperson dismissed the claims as “false”, saying: "The implication that Tesla would ever deliver a car with a hazardous battery is absolutely inaccurate, contrary to all evidence, and detached from reality.”

The spokesman added: “Every battery in a Tesla vehicle has thousands of cells, the vast majority of which are at the same voltage potential as neighbouring cells. Hypothetically, even if two cells of the same voltage potential were touching, there would be absolutely zero impact, safety or otherwise – it would be as if two neutral pieces of metal touched.”

READ: Elon Musk set for multi-billion dollar payday if Tesla hits various milestones over next decade

Shares in Tesla rose 1.1% to US$341.60 in US pre-market, reversing a decline in the previous session. 

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Fri, 26 Jan 2018 09:07:00 -0500 http://www.proactiveinvestors.com/companies/news/190696/tesla-employees-expect-further-model-3-delays-due-to-battery-production-issues-190696.html
<![CDATA[News - Elon Musk set for multi-billion dollar payday if Tesla hits various milestones over next decade ]]> http://www.proactiveinvestors.com/companies/news/190467/elon-musk-set-for-multi-billion-dollar-payday-if-tesla-hits-various-milestones-over-next-decade-190467.html Tesla Inc. (NASDAQ:TSLA) founder and chief executive Elon Musk could be set for one of the biggest corporate payouts of all time – although only if he increases the electric carmaker’s market value to US$650bn within a decade.

It is a tough ask for a company currently worth US$59bn, but if he succeeds, Musk stands to take home a whopping US$7.2bn based on today’s prices.

All-or-nothing​

It is an all-or-nothing move from the already eccentric billionaire as he won’t receive any guaranteed pay over that period. So if he fails to hit the targets set out for him, he will essentially have been working for free.

“Elon's only compensation will be a 100pc at-risk performance award, which ensures that he will be compensated only if Tesla and all of its shareholders do extraordinarily well,” the company said in a statement.

“Because all Tesla employees are provided equity, this also means that Elon's compensation is tied to the success of everyone at Tesla.”

12 milestones, each worth US$600mln at today’s prices​

The California-based firm has outlined 12 demanding milestones that Tesla, under the leadership of Musk, must hit if the 46-year-old is to trigger payouts equal to 1% of Tesla’s outstanding shares.

It is more than just market value as well; Musk must also meet various revenues and earnings targets, ultimately generating sales of US$175bn and earnings of US$14bn.

READ: Tesla shares weak after Model 3 build slowdown

For each of the 12 milestones achieved, he will be entitled to stock options equal to 1% of Tesla’s outstanding shares – about 1.7mln shares at the moment. At the current stock price of US$355, each milestone is worth just shy of US$600mln.

That means Musk is in line for a US$7.2bn paycheck but should the shares continue to rise, as they will inevitably have to do if he is to meet his targets, the payout could be far greater.

Musk has to remain at the helm​

The agreement also ties Musk to Tesla for the foreseeable future, as he must remain chief executive or executive chairman for the awards to vest.

Given that he has agreed to link all of his compensation to Tesla’s performance, Musk is obviously confident that the company is set to grow rapidly over the coming years.

Not all analysts are as optimistic though, given that Tesla has repeatedly missed production targets, is yet to make a profit and burnt through almost US$500,000 an hour last year, according to Bloomberg.

A special shareholder meeting next month (February) will give investors a chance to vote on the proposed deal.

Tesla shares rose 1% to US$355 in pre-market trading on Tuesday.

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Tue, 23 Jan 2018 07:18:00 -0500 http://www.proactiveinvestors.com/companies/news/190467/elon-musk-set-for-multi-billion-dollar-payday-if-tesla-hits-various-milestones-over-next-decade-190467.html
<![CDATA[News - Tesla powers up rollout of solar roof shingles ]]> http://www.proactiveinvestors.com/companies/news/189809/tesla-powers-up-rollout-of-solar-roof-shingles-189809.html Tesla Inc. (NASDAQ:TSLA) wants to energize your rooftop.

The innovative maker of electric cars announced Tuesday that it has begun manufacturing electricity-producing roof shingles at its new factory in upstate New York.

The company first revealed plans to offer premium solar roof tiles at the time of its US$2bln acquisition of SolarCity Corp. in 2016. CEO and founder Elon Musk has said that the glass solar shingles will transform the rooftop solar industry.

READ: Musk drums up support for Tesla-SolarCity tie-up

Tesla’s shingles closely resemble ordinary shingles, except they allow light to pass through to a flat solar cell to produce electricity. Musk and Chief Technical Officer JB Straubel, as well as several Tesla employees, had solar roofs installed on their own homes in a test program.

The Buffalo, N.Y., facility called Gigafactory 2, began production of solar panels and cells four months ago. The 1.2-million-square-foot factory was built with a US$750mln contribution from New York state to jump start the economy in the western part of the state.

The Gigafactory began rolling out the photovoltaic glass tiles last month.

According to Bloomberg energy analyst Hugh Bromley, the premium solar shingles will cost more than conventional roofing, but not “wickedly so.”

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Wed, 10 Jan 2018 08:01:00 -0500 http://www.proactiveinvestors.com/companies/news/189809/tesla-powers-up-rollout-of-solar-roof-shingles-189809.html
<![CDATA[News - Tesla shares weak after Model 3 build slowdown ]]> http://www.proactiveinvestors.com/companies/news/189534/tesla-shares-weak-after-model-3-build-slowdown-189534.html Tesla Inc (NASDAQ:TSLA) shares were on the back foot in early trade on Thursday following reports that the intended roll-out of the Model 3 electric vehicle has again been delayed.

Elon Musk’s Earth-focused company is now expected to build 2,500 Model 3 vehicles per week through the first quarter of 2018, which is half as many as prior plans, and it then expects to increase the rate to 5,000 vehicles per week through the second quarter.

READ: Tesla faces competition for Model X after China's Nio releases car at half the price

“As we continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time, we expect to have a slightly more gradual ramp through the first quarter,” Tesla said.

In a statement, Tesla reported that it delivered only 1,550 Model 3s in the fourth quarter along with 15,200 Model S and 13,120 Model X.  The company described it as its “all-time best quarter”, for Model S and Model X.

In early New York trading, Tesla stock was down 2.6% at US$309.11.

  -- Updates share price --

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Thu, 04 Jan 2018 13:21:00 -0500 http://www.proactiveinvestors.com/companies/news/189534/tesla-shares-weak-after-model-3-build-slowdown-189534.html
<![CDATA[News - Tesla, Intel, Rite Aid, Zumiez - AFTER HOURS ]]> http://www.proactiveinvestors.com/companies/news/189525/tesla-intel-rite-aid-zumiez-after-hours-189525.html After the New York bell, Tesla (NASDAQ:TSLA) shares dropped 2.44% to US$309.50 as the electric car giant unveiled its fourth quarter production and delivery stats.

The report revealed that the company has missed Wall Street's projections on several fronts, amid production issues.

It also once again pushed back production targets on its highly anticipated Model 3 sedan.

 

MORE: Tesla says company hit production rate on each manufacturing line that extrapolates to over 1,000 Model 3's per week, intends to achieve 5,000 per week by end of Q2 $TSLA https://t.co/sZUvy1vZdX pic.twitter.com/cqXMCewFF9

— Reuters Top News (@Reuters) 3 January 2018

Meanwhile, in other tech news, chip firm Intel Corp (NASDAQ:INTC) dropped 2.25% to US$44.24 in extended trade after chief executive Brian Krzanich responded to allegations about the company's chips.

An industry blog reported this week that a patch for a security flaw in some of its chips would hamper performance.

The company boss said Google made Intel aware of the widespread security exploit previously and that the companies had been working together to fix it.

Meanwhile,  Rite Aid Corp (NYSE:RAD) shares dropped 3.79% to US$2.03 after the drugstore chain beat third quarter estimates for earnings and revenue, following adjustments to account for discontinued operations.

Elsewhere and heading decidedly the other direction, Zumiez Inc (NASDAQ:ZUMZ) shares surged almost 17% to US$23.95 after the specialty clothing retailer reported a 7.9% increase in year-on-year same store sales for the month of December. 

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Thu, 04 Jan 2018 07:38:00 -0500 http://www.proactiveinvestors.com/companies/news/189525/tesla-intel-rite-aid-zumiez-after-hours-189525.html
<![CDATA[News - Tesla faces competition for Model X after China's Nio releases car at half the price ]]> http://www.proactiveinvestors.com/companies/news/188951/tesla-faces-competition-for-model-x-after-china-s-nio-releases-car-at-half-the-price-188951.html Tesla Inc. (NASDAQ:TSLA) is set to compete with China start-up Nio in the production of mass-produced electric vehicles.

Nio has launched its first mass-produced model to rival Tesla’s Model X in China.

READ: PepsiCo reserves 100 of Tesla’s new electric Semi trucks, the largest-known order so far

The ES8 starts at 448,000 Chinese yuan (US$67,765), which is half the starting price of the 836,000 yuan (US$126,470) Model X in China.

Nio founder and chairman William Li told CNBC over the weekend that it was “hard to assume” how the ES8 will affect Tesla’s sales in China.

"Maybe Tesla will sell less ... after our product is out. Or probably, because the whole market is growing, they will still maintain growth in sales. It's hard to say,” Li said.

"But we do have lots of customers that turned to us from Tesla, and many who have bought buy products from both.”

The ES8 is made to order, customisable and equipped with an artificial intelligence system. The seven-seat vehicle will be able to accelerate to 100km per hour in 4.4 seconds.

Possible IPO in the US

The ES8 sports utility vehicle has a range of 500 kilometres on a single charge. Owners can charge the car by swapping batteries at power-swap stations in three minutes or by recharging through ‘Power Mobile’ service vehicles that travel to motorists.

Nio plans to build more than 1,100 power-swap charging stations and deploy more than 1,200 'Power Mobile' vehicles by 2020.

The Model X has a range of about 564 kilometres and can accelerate from zero to 60 miles per hour in 2.9 seconds.

Nio is reportedly considering an initial public offering in the US next year. However, Li said there is no specific deadline for an IPO, rather it will “depend on the development of the company”.

Tesla shares nudged 0.08% lower in New York at US$343.20.

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Mon, 18 Dec 2017 12:19:00 -0500 http://www.proactiveinvestors.com/companies/news/188951/tesla-faces-competition-for-model-x-after-china-s-nio-releases-car-at-half-the-price-188951.html
<![CDATA[News - PepsiCo reserves 100 of Tesla’s new electric Semi trucks, the largest-known order so far ]]> http://www.proactiveinvestors.com/companies/news/188668/pepsico-reserves-100-of-teslas-new-electric-semi-trucks-the-largest-known-order-so-far-188668.html PepsiCo Inc (NYSE:PEP) has reserved 100 of Tesla Inc’s (NASDAQ:TSLA) new electric Semi trucks, the largest-known order so far.

PepsiCo’s 100 trucks add to orders already made by more than a dozen companies such as retail giant Wal-Mart Stores Inc (NYSE:WMT), fleet operator JB Hunt Transport Services Inc (NASDAQ:JBHT), and foodservice distribution company Sysco Corp (NYSE:SYY).

$TSLA Pepsi Orders 100 Semis are Coke and Amazon next? $KO $AMZN $PEP @elonmusk #tesla pic.twitter.com/y2Ge2vk0dB

— Navi Avatar (@NaviAvatar1) 12 December 2017

Reservations to date for the new Tesla truck are at 267, according to a Reuters tally.

Tesla unveiled the Semi last month and expects the truck to be in production by 2019.

The new semis will complement PepsiCo’s US fleet of nearly 10,000 trucks and are a key part of its plan to reduce greenhouse gas emissions across its supply chain by a total of at least 20% by 2030, Mike O‘Connell, the senior director of North American supply chain for PepsiCo subsidiary Frito-Lay, said in a statement.

About 260,000 heavy-duty Class-8 trucks are produced in North America annually, according to industry economics research.

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Tue, 12 Dec 2017 08:53:00 -0500 http://www.proactiveinvestors.com/companies/news/188668/pepsico-reserves-100-of-teslas-new-electric-semi-trucks-the-largest-known-order-so-far-188668.html
<![CDATA[News - AB InBev reserves 40 Tesla electric semi-trucks ]]> http://www.proactiveinvestors.com/companies/news/188460/ab-inbev-reserves-40-tesla-electric-semi-trucks-188460.html Brewing giant Anheuser-Busch InBev (NYSE:BUD) has reserved 40 of Telsa Inc.’s (NASDAQ:TSLA) electric semi-trucks.

AB InBev, which owns the Budweiser beer brand, will use the trucks for shipments to wholesalers within 150 to 200 miles of its brewery locations in an effort to reduce fuel costs and emissions.

READ: AB InBev shares fizz up after it buys Hiball Inc

The truck, which can drive 500 miles on a single charge, is not available until 2019.

James Sembrot, ABInBev’s senior director of logistics strategy, said the company has not decided whether to buy the vehicles outright or to lease them.

The company has a fleet of about 750 trucks, which have the ABInBev branding but are owned and managed by outside carriers.

The group could also ask one of its dedicated carriers to buy or lease the Tesla trucks.

“We put the reservations down so we can prioritize our place in line," Sembrot said. "We don't know who the carrier is going to be in two to three years when these things are actually produced.

READ: DHL joins rush to pre-order Tesla electric trucks

The reservation was placed before the truck was unveiled in California last month.

Sembrot declined to reveal the cost of the reservation but Tesla had set deposits at US$5,000 at the time of the announcement and has since raised the amount to US$20,000.

The trucks are expected to list for US$150,000 to US$200,000. A new diesel-powered heavy-duty truck can sell for US$150,000

Deutsche Post AG's (ETR:DPW) DHL, Wal-Mart Stores Inc. and J.B. Hunt Transport Services Inc. have also made reservations for the truck.

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Thu, 07 Dec 2017 14:00:00 -0500 http://www.proactiveinvestors.com/companies/news/188460/ab-inbev-reserves-40-tesla-electric-semi-trucks-188460.html
<![CDATA[News - Tesla demand waning as customers rather go elsewhere than wait for new vehicles, says analyst ]]> http://www.proactiveinvestors.com/companies/news/188293/tesla-demand-waning-as-customers-rather-go-elsewhere-than-wait-for-new-vehicles-says-analyst-188293.html With a long wait for new Tesla Inc. (NASDAQ:TSLA) models, customers are beginning to go elsewhere, according to investment research firm Cascend Securities.

Cascend downgraded its rating on the stock to ‘sell’ from ‘hold’ with analyst Eric Ross saying those who have not already pre-ordered won’t get any of the company's new vehicles until 2019.

"Additionally, all the known issues of capital burn/raises, Model 3 production issues, and increased competition," Ross wrote in a note.

“We have ‘buy’ ratings on Ford Motor Company (NYSE:F) and General Motors (NYSE:GM. If you want risk, buy CME bitcoin futures on Sunday." 

Ross added that competition in the electric vehicle market is growing with all of the major carmakers now in the sector.

In August, chief executive Elon Musk said about 63,000 people had cancelled their orders for the Model 3.

But Musk shrugged off the cancellations, noting that the company has been averaging about 1,800 new Model 3 reservations per day since the first 30 cars were handed over to Tesla employees in July.

“It’s like if you’re a restaurant and you’re serving hamburgers, and there’s an hour-and-a-half wait for a hamburger, do you really want to encourage people to come buy more hamburgers?,” Musk said.

READ: Tesla CEO Elon Musk says demand for Model 3 is like serving hungry customers hamburgers

Meanwhile, the company’s electric semi truck won’t be available until 2019 and production for the new Roadster won’t start until 2020.

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Tue, 05 Dec 2017 15:08:00 -0500 http://www.proactiveinvestors.com/companies/news/188293/tesla-demand-waning-as-customers-rather-go-elsewhere-than-wait-for-new-vehicles-says-analyst-188293.html
<![CDATA[News - Elon Musk goes plain boring as he bids to give Chicago a high speed train ]]> http://www.proactiveinvestors.com/companies/news/188132/elon-musk-goes-plain-boring-as-he-bids-to-give-chicago-a-high-speed-train-188132.html By now the world is surely realising that Elon Musk's ideas are on the ambitious side.

From space travel, driverless autos and battery technology, this is one entrepreneur who is pushing the boundaries.

But sadly now it appears he's gone just plain boring..

His (The) Boring Company is now competing to fund and construct  a high speed train loop that will link Chicago's airport with the city centre.

The Boring Company proposes 125-150mph “Loop” for Chicago Express train request | Ars Technica https://t.co/aawJQXWwCM pic.twitter.com/DUth8ZjPsK

— Mike Pons (@mikepons) December 1, 2017 As the name suggests, his company will tunnel into the ground to create a network to carry high speed trains propelled by electromagnets.

Musk wants to revolutionize transportation by sending passengers into pods through an intercity system of giant vacuum tubes known as the "hyperloop."

In a tweet, the indefatigable Musk explained via a tweet that: "A Loop is like a Hyperloop, but without drawing a vacuum inside the tube."

“Although cost estimates for the project are not yet known, the RFQ (Request for Qualifications) stipulates that the O‘Hare Express Service will be funded solely by project-specific revenues (like fares or advertising) and financed entirely by the concessionaire,” Chicago mayor Rahm Emanuel’s office said in a statement.

Musk is also the founder of SpaceX. Recently, he unveiled his vision of passengers being able to fly long distance between cities on earth via rockets.

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Fri, 01 Dec 2017 09:14:00 -0500 http://www.proactiveinvestors.com/companies/news/188132/elon-musk-goes-plain-boring-as-he-bids-to-give-chicago-a-high-speed-train-188132.html
<![CDATA[News - Tesla flicks the switch on globe's largest lithium battery in South Australia ]]> http://www.proactiveinvestors.com/companies/news/188098/tesla-flicks-the-switch-on-globe-s-largest-lithium-battery-in-south-australia-188098.html Tesla Inc (NASDAQ:TSLA) has made history once again  - as its huge 100MW lithium-ion battery - the globe's largest, was switched on yesterday.

It began delivering electricity into South Australia's electricity grid and Tesla founder Elon Musk made good on his promise that the huge storage base could be built within 100 days.

READ: Tesla installs world’s largest lithium-ion battery in South Australia

He said he would provide it for free, if not.

The battery is paired to neighbouring Hornsdale Wind Farm, owned by French company Neoen, and will bring greater energy stability to the grid, which suffered blackouts last year.

It can provide 30,000 homes with power for up to an hour in the event of a blackout, but is more likely to be used to balance electricity supplies at less critical times.

The battery is estimated to have cost US$38mln to realise and is part of South Australia’s bid to provide half the state’s electricity from renewables by 2025.

"The completion of the world’s largest lithium-ion battery in record time shows that a sustainable, effective energy solution is possible,” said Tesla in a statement yesterday.

Tesla shares closed Thursday 0.43% higher at US$308.85 and nudged 0.28% higher after hours.

South Australia is now leading the world in dispatchable renewable energy, delivered to homes and businesses 24/7. The world’s biggest lithium ion battery. History in the making. @Tesla #cleanenergy #renewables pic.twitter.com/QCDfr1gob4

— Jay Weatherill (@JayWeatherill) 1 December 2017 ]]>
Fri, 01 Dec 2017 07:33:00 -0500 http://www.proactiveinvestors.com/companies/news/188098/tesla-flicks-the-switch-on-globe-s-largest-lithium-battery-in-south-australia-188098.html
<![CDATA[News - DHL joins rush to pre-order Tesla electric trucks ]]> http://www.proactiveinvestors.com/companies/news/187997/dhl-joins-rush-to-pre-order-tesla-electric-trucks-187997.html Deutsche Post AG's (ETR:DPW) DHL has joined the rush of transport companies to pre-order the new Tesla Inc. (NASDAQ:TSLA) Semi electric truck within days of its release.

The logistics postal services company has placed an order for 10 of Tesla’s commercial heavy-duty trucks.

DHL Supply Chain handles logistics operations for retailers and manufacturers. It intends to use the Tesla trucks for shuttle runs and same-day customer deliveries in major US cities.

Plan to test trucks on longer runs

DHL also plans to test the electric trucks on longer runs, and to evaluate its impact on driver safety and comfort.

Tesla chief executive Elon Musk revealed the commercial heavy-duty truck last Thursday and the company expects to begin production in 2019.

The truck will run up to 500 miles on a single charge, surprising many analysts who had expected 200 miles.

READ: Wal-Mart and J.B. Hunt place pre-orders for Tesla's electric truck

Within 24-hours of the release Wal-Mart Stores Inc. and J.B. Hunt Transport Services Inc. made reservations.

Wal-Mart has pre-ordered 15 trucks, including five for its US operations and 10 for Canada.

J. B. Hunt has made reservations to buy “multiple” Tesla Semis to support divisions in its West coast operations.

Price is surprisingly competitive

The truck’s price is surprisingly competitive with estimates suggesting it will be sold for just shy of US$200,000 for the top spec. That compares with around US$110,000 for a brand new diesel rig.

DHL Supply Chain president of transportation in North America Jim Monkmeyer said the company has been working with Tesla over the past few months and has test-driven some of the vehicles in California.

The company ordered the trucks last week, for US$5,000 per reservation but hasn't yet worked out the vehicle specifications or final cost.

READ: Tesla’s new semi-truck could save companies up to US$30,000 a year in fuel costs

In most cases, the orders have been small, with buyers planning to test out the Semi on short routes, such as between ports and nearby warehouses, or warehouses and stores.

The specifications announced by Tesla exceeded expectations for many industry observers.

At the launch, Musk revealed that Tesla would guarantee truckers electricity rates of 7 cents per kilowatt hour, which could work out US$30,000 a year cheaper compared to the fuel costs of an average diesel truck.

Cost to reserve Semi has jumped

The cost to reserve a Semi has jumped, to $20,000 for a base reservation from $5,000 at the time of the initial announcement.

Monkmeyer said he isn’t concerned about timely delivery from Tesla, which has faced delays with production of its Model 3 sedan.

“Something like this that's new and is as complex as the Semi, I don’t know if we can count on specific dates.

“We understand the challenges that they are facing. This is the future and we want to be in on the ground floor.”

Fortigo Freight Services Inc., a Canadian logistics firm that manages trucking fleets for retailers and manufacturers, last week reserved a Tesla Semi for about C$26,000.

The balance, just under $181,000, will be due "when the Tesla is delivered, date to be confirmed," said chief executive Elias Demangos.

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Wed, 29 Nov 2017 15:42:00 -0500 http://www.proactiveinvestors.com/companies/news/187997/dhl-joins-rush-to-pre-order-tesla-electric-trucks-187997.html
<![CDATA[News - Bitcoin blows past the US$11,000 level; Elon Musk denies being its mysterious inventor ]]> http://www.proactiveinvestors.com/companies/news/187994/bitcoin-blows-past-the-us11000-level-elon-musk-denies-being-its-mysterious-inventor-187994.html The surge of Bitcoin has continued today, with the value of the cryptocurrency blowing past the US$11,000 level, new record highs having only pushed through US$10,000 yesterday, as billionaire Elon Musk has denied being its mysterious inventor.

Not true. A friend sent me part of a BTC a few years, but I don’t know where it is.

— Elon Musk (@elonmusk) 28 November 2017

Neil Wilson, market analyst at ETC Capital commented: “The madness of crowds is well documented, but it is quite something to behold in the flesh.  It’s hard to keep up with this - Bitcoin just flew past the $11k mark, leaping $200 in barely five minutes before taking another big leg higher.”

He added: “It’s up more than 14% today alone and the YTD chart is simply staggering. There are no fundamentals or technicals that explain this other than it being a massive speculative bubble.

“It’s hard to say precisely where we are in the curve, but the shape of the chart is parabolic and this sort of thing never, ever lasts.  So far it’s following the playbook for a speculative bubble to the letter.”

Wilson concluded that: “The big question is whether we have reached the euphoric stage or are still in the boom phase. The other question is when to get out before panic sets in. Whilst this appears like a classic bubble, Bitcoin could have a lot, lot further to run before it blows.”

As the bitcoin surge continues, billionaire electric car pioneer and space rocket developer Elon Musk has denied that he is the inventor of the cryptocurrency coin, according to a Guardian Online report.

The newspaper’s website said Musk – the boss of Tesla Motors Inc (NASDAQ:TSLA), CEO of Space Exploration Technologies, and co-founder of PayPal Inc - responded to a blog post circulating on several crypto-currency sites claiming that he is Satoshi Nakamoto, the mysterious creator of bitcoin who has never been conclusively identified.

In a Tweet yesterday, Musk said “Not true. A friend sent me part of a BTC [bitcoin] a few years, but I don’t know where it is.”

The Guardian report said Musk was responding to a post on Medium last week in which writer Sahil Gupta floated the idea that based on Musk’s history of innovation across tech disciplines.

Tesla shares lost 3.15% on the day at US$307.54 each.

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Wed, 29 Nov 2017 09:54:00 -0500 http://www.proactiveinvestors.com/companies/news/187994/bitcoin-blows-past-the-us11000-level-elon-musk-denies-being-its-mysterious-inventor-187994.html
<![CDATA[News - Tesla’s success to come at the expense of BMW, says UBS ]]> http://www.proactiveinvestors.com/companies/news/187917/teslas-success-to-come-at-the-expense-of-bmw-says-ubs-187917.html Tesla Inc (NASDAQ:TSLA) is the name on everyone’s lips when it comes to talking electric vehicles (EVs). UBS recently noted that consumer interest in electric vehicles is on the rise with its Evidence Lab survey indicating circa 10,000 consumers in the six largest car markets are interested in the breed of transport.

However, the broker also noted that Tesla’s rise to fame is likely to come at the expense of other major auto manufacturers such as BMW. Indeed, the popularity of diesel cars is falling sharply.

UBS raises long-term sales forecasts for electric vehicles

On this note, UBS has raised its sales forecasts from 14.2mln to 16.5mln vehicles in 2025, driven to a large extent by higher demand from China.

This implies an electric vehicle sales growth rate of 16% by 2025, suggesting every sixth car sold globally will be an EV. The uptake in Europe is expected to be stronger with every third car an EV.

UBS is of the view that the higher purchase price will be offset by lower fuel and maintenance costs, resulting in one in four consumers looking to buy an EV, albeit at a premium price.

READ: Tesla’s new semi-truck could save companies up to US$30,000 a year in fuel costs Success of Tesla bad news for BMW

UBS particularly pointed out the detrimental impact these dynamics are likely to have on BMW, highlighting it is the car manufacturer likely to be most disadvantaged by the transition to electric vehicles.

On this note, UBS said: “BMW's  3-series is seen as the closest competitor to Tesla's Model 3 by consumers.

Tesla has made the biggest progress in the survey as the most credible EV brand, at the expense of all other established brands, save Mercedes.”

While the benefit of having established dealer networks should work in favour of traditional automotive brands, this should be more of a short term issue for Tesla as it gains market traction.

Early signs of market penetration should be apparent in competitor's marginns

The impact of Tesla is likely to become evident in its competitor’s margins. Other factors at play include progress that battery makers are having in moving to chemistries with higher energy density and lower costs in terms of power output.

Original equipment makers (OEMs) should benefit from scale as distribution of electric vehicles ramps up.

UBS noted recent industry commentary suggesting margin parity could be reached between 2022 and 2025.

Looking specifically at OEMs, UBS expects the margin trough to occur between 2020-23, with a gradual recovery thereafter. 

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Tue, 28 Nov 2017 14:05:00 -0500 http://www.proactiveinvestors.com/companies/news/187917/teslas-success-to-come-at-the-expense-of-bmw-says-ubs-187917.html
<![CDATA[News - Tesla’s new semi-truck could save companies up to US$30,000 a year in fuel costs ]]> http://www.proactiveinvestors.com/companies/news/187844/teslas-new-semi-truck-could-save-companies-up-to-us30000-a-year-in-fuel-costs-187844.html Tesla Inc (NASDAQ:TSLA) reckons its recently-unveiled electric truck can save companies as much as US$30,000 per vehicle per year.

The truck’s price is surprisingly competitive with estimates suggesting it will be sold for just shy of US$200,000 for the top spec. That compares with around US$110,000 for a brand new diesel rig.

So it’s still an expensive investment and to try to encourage companies to add the new Semi – equivalent to a Class 8 truck – to their fleet, Tesla is looking to offset the higher upfront costs through lower maintenance and fuel savings.

At the launch earlier this month, Elon Musk revealed that Tesla would guarantee truckers electricity rates of 7 cents per kilowatt hour, which could work out US$30,000 a year cheaper compared to the fuel costs of an average diesel truck.

Analysts believe Tesla would have to heavily subsidise these cheap rates, estimating that the company would be lucky to pay less than 45 cents per kilowatt hour.

“There's no way you can reconcile 7 cents a kilowatt hour with anything on the grid that puts a megawatt hour of energy into a battery,” said Bloomberg New Energy Finance analyst Salim Morsy.

“That simply does not exist.”

Tesla employs a similar strategy for some of its current customers, offering free electricity to most of its Model S and Model X drivers while paying the best part of US$1 per kilowatt hour. That amounts to up to a US$1,000 subsidy per car in 2017.

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Mon, 27 Nov 2017 08:51:00 -0500 http://www.proactiveinvestors.com/companies/news/187844/teslas-new-semi-truck-could-save-companies-up-to-us30000-a-year-in-fuel-costs-187844.html
<![CDATA[News - Tesla installs world’s largest lithium-ion battery in South Australia ]]> http://www.proactiveinvestors.com/companies/news/187712/tesla-installs-worlds-largest-lithium-ion-battery-in-south-australia-187712.html Tesla Inc. (NASDAQ:TSLA) has finished installing the world’s largest lithium-ion battery in South Australia to store renewable energy.

The 100-megawatt battery is about to enter final testing following its installation at Jamestown, where it is connected to an adjacent wind farm run by French renewable energy company Neoen.

The battery, which stores enough energy to power 30,000 homes for about an hour, will be officially launched next week.

READ: Tesla surprises the world by using truck launch to unveil the new Roadster

Premier Jay Weatherill said: “While others are just talking, we are delivering our energy plan, making South Australia more self-sufficient and providing backup power and more affordable energy for South Australians this summer.”

He added: “The world’s largest lithium-ion battery will be an important part of our energy mix and it sends the clearest message that South Australia will be a leader in renewable energy with battery storage.”

South Australia’s A$530mln energy plan was launched last year after a state-wide blackout during severe storms in September and a load-shedding event across Adelaide in February.

Load shedding blackouts happen when the Australian Energy Market Operator orders power companies to switch off electricity to customers to protect the grid when demand outstrips supply.

Following the blackouts, Tesla chief executive Elon Musk put forward an offer on Twitter for a battery to power homes in South Australia.  

Congratulations to the Tesla crew and South Australian authorities who worked so hard to get this manufactured and installed in record time! https://t.co/M2zKXlIVn3

— Elon Musk (@elonmusk) 23 November 2017

The state’s energy plan also includes the installation of government-owned emergency generation and support for a solar thermal power plant at Port Augusta.

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Thu, 23 Nov 2017 12:42:00 -0500 http://www.proactiveinvestors.com/companies/news/187712/tesla-installs-worlds-largest-lithium-ion-battery-in-south-australia-187712.html
<![CDATA[News - Morgan Stanley believes Tesla shares will be “extremely volatile” next year ]]> http://www.proactiveinvestors.com/companies/news/187653/morgan-stanley-believes-tesla-shares-will-be-extremely-volatile-next-year-187653.html Analysts at Morgan Stanley believe Tesla Inc. (NASDAQ:TSLA) shares will be “extremely volatile” next year, with the electric vehicle firm’s stock likely to reach highs that could top US$400 before facing headwinds that could take them below current levels.

In a note to clients, the US bank’s  analysts also slashed their forecasts for Model 3 production in the fourth quarter, saying they expect Tesla to deliver just 1,000 of the mass-market car, down from a previous expectations of 10,000 deliveries. They kept their 2018 forecast of 120,000 Model 3 deliveries unchanged.

Tesla chief executive, Elon Musk had predicted that Tesla would be able to make 5,000 Model 3 cars a week by the end of the year, but after third-quarter results earlier this month he warned that the company would likely only reach that milestone late in the first quarter.

The Morgan Stanley analysts predict two stages to Tesla stock’s run in 2018, one driven by an easing of production bottlenecks with strong cash flow, and the downturn then led by “mounting concerns” over whether the group can hold on to its “competitive moat” as more car producers move into the electric market.

Morgan Stanley retained a ‘neutral’ rating on the stock with a price target of US$379.

In pre-market trading, Tesla shares edged 0.1% higher to US$317.81. 

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Wed, 22 Nov 2017 08:03:00 -0500 http://www.proactiveinvestors.com/companies/news/187653/morgan-stanley-believes-tesla-shares-will-be-extremely-volatile-next-year-187653.html
<![CDATA[News - Wal-Mart and J.B. Hunt place pre-orders for Tesla's electric truck ]]> http://www.proactiveinvestors.com/companies/news/187511/wal-mart-and-jb-hunt-place-pre-orders-for-tesla-s-electric-truck-187511.html US retailer Wal-Mart Stores Inc. (NYSE:WMT) and trucking company J.B. Hunt Transport Services Inc. (NASDAQ:JBHT) have pre-ordered the new Tesla Inc. (NASDAQ:TSLA) electric truck - within a day of the vehicle's unveiling. 

Tesla chief executive Elon Musk revealed the commercial heavy-duty truck late Thursday along with a revamped Roadster, the company’s luxury sports car. The truck will begin production in 2019 while the new Roadster will be available in 2020.

READ: Tesla surprises the world by using truck launch to unveil the new Roadster

Wal-Mart said on Friday that it had pre-ordered 15 trucks, including five for its US operations and 10 for Canada.

Wal-Mart is “excited to be among the first to pilot this new heavy-duty electric vehicle. We believe we can learn how this technology performs within our supply chain, as well as how it could help us meet some of our long-term sustainability goals, such as lowering emissions,” the company said in a statement.

J. B Hunt has made reservations to buy “multiple” Tesla Semis to support divisions in its West coast operations, it said on Friday.

“Reserving Tesla trucks marks an important step in our efforts to implement industry-changing technology,” chief executive John Roberts said in a statement. “We believe electric trucks will be most beneficial on local and dray routes, and we look forward to utilizing this new, sustainable technology.”

The truck will be able to drive up to 500 miles on a single battery charge, surprising many analysts who had expected 200 miles.

Tesla Semi pic.twitter.com/7VLz7F46Ji

— Elon Musk (@elonmusk) 17 November 2017

Not saying the next gen Roadster special upgrade package *will* definitely enable it to fly short hops, but maybe …

Certainly possible. Just a question of safety. Rocket tech applied to a car opens up revolutionary possibilities.

— Elon Musk (@elonmusk) 19 November 2017

For the Roadstar, Tesla is requiring the first would-be buyers to pay the full price of the vehicle upfront to secure a pre-order.

The first 1,000 cars that will be available of the Roadster are the Founders Series Models, which have a starting price of US$250,000.

To pre-order, buyers must put down a US$5,000 reservation and wire the company US$245,000 within 10 days, even though the vehicle won’t be available until 2020.

The regular Roadster models, which have a starting price of US$200,000, will also require reservation of US$5,000 and a US$45,000 wire transfer in 10 days, with the balance due at delivery.

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Mon, 20 Nov 2017 12:46:00 -0500 http://www.proactiveinvestors.com/companies/news/187511/wal-mart-and-jb-hunt-place-pre-orders-for-tesla-s-electric-truck-187511.html
<![CDATA[News - Tesla surprises the world by using truck launch to unveil the new Roadster ]]> http://www.proactiveinvestors.com/companies/news/187423/tesla-surprises-the-world-by-using-truck-launch-to-unveil-the-new-roadster-187423.html It was billed as a launch for a new electric truck. But Tesla Inc’s (NASDAQ:TSLA) Elon Musk, always the showman, sprang a major surprise on the audience of converted petrol-heads, journalists and geeks gathered at the SpaceX Center, Hawthorne, California last night.

For out the back of a trailer, pulled by its new giant battery-powered Tesla Semi, emerged the revamped Roadster 2.0, which Musk said was the fastest production car ever, “period”.

READ: Tesla shifts sharply into reverse after cutting production guidance for Model 3

With a rip-yer-face off 0-60mph in under two seconds, it outpaces any of the supercharged McLarens, Bugattis and Koenigseggs beloved of the ‘boy racers’ who inhabit Knightsbridge, Kensington and Mayfair every summer.

 

Elon Musk unveiled a new Tesla Roadster that he said could reach 60 miles per hour in 1.9 seconds https://t.co/HC5Fp0NWVP

— The New York Times (@nytimes) November 17, 2017 Range not a problem

For those who suffer range anxiety (and who have US$200,000 to spare), fear not as the Tesla supercar will be able to cruise almost 1,000 kilometres between charges.

The Financial Times describes Roadster’s sleek lines as a throwback to its first Lotus-designed vehicle.

Musk thinks his new baby will radically shake-up the premium end of the market.

“The point of this is just to give a hardcore smackdown to gasoline cars,” he said.

“Driving a gasoline sports car is going to feel like a steam engine with a side of quiche.”

Truck launch overshadowed

The unveiling of the new sports model, which will be seen on the roads from 2020, overshadowed the launch of the Tesla Semi – and you suspect that was the plan.

Yet the rig, whose design makes you actually want to own a truck, could revolutionise haulage.

Again, Tesla appear to have the range problem sorted – it can go around 800 kilometres without being plugged in.

READ: Tesla could miss its ‘iPhone moment’ warns Barclays if Model 3 production problems persist

And its curves aren’t there just for show, but to reduce the drag and overall enhance efficiency.

Earlier this week Musk tweeted that the truck would "blow your mind clear out of your skull," joking: "It can transform into a robot, fight aliens and make one hell of a latte."

If nothing else, it has the likes of Daimler Benz and Volkswagen and the other big lorry makers on the back foot.

Tesla added 3.03% to US$321.97.

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Fri, 17 Nov 2017 08:42:00 -0500 http://www.proactiveinvestors.com/companies/news/187423/tesla-surprises-the-world-by-using-truck-launch-to-unveil-the-new-roadster-187423.html
<![CDATA[News - Tesla, GoPro, FireEye and more- AFTER HOURS ]]> http://www.proactiveinvestors.com/companies/news/186663/tesla-gopro-fireeye-and-more-after-hours-186663.html Elon Musk's Tesla Inc (NASDAQ:TSLA) saw shares fall almost 5% after the  New York bell to stand at US$305.88 after posting quarterly numbers, which were mixed.

The electric car giant reported a bigger-than-expected loss per share of $2.92 but higher-than-expected revenue of $2.98 billion.

Meanwhile, GoPro Inc (NASDAQ:GRPO) shares shed over 9% to US$9.68 as it reported higher than expected earnings, but reported weaker-than-expected guidance for the fourth quarter.

Social networking giant and Mark Zuckerberg's creation Facebook (NASDAQ:FB.) declined 1.13% in extended trading to US$180.60 as its third quarter earnings significantly beat analysts' expectations.

The group reported surging sales of digital ads, more active users than expected and accelerated revenue, it emerged.

Shake Shack Inc (NYSE:SHAK) is a firm that has caught increasing attention lately, after humble beginnings in 2004.  The New York based firm's shares  added 2.34% after hours  after it posted third quarter earnings and revenues, which were slightly higher than Wall Street's expectations.

Finally, FireEye Inc (NASDAQ:FEYE) shares dropped over 9% to US$14.80 in extended trading after the cybersecurity group unveiled an adjusted loss of 4 cents per share for the third quarter.

It's not looking great for those of you eagerly awaiting your Tesla Model 3 https://t.co/lwMsfmCfMS

— WIRED (@WIRED) 2 November 2017 ]]>
Thu, 02 Nov 2017 08:20:00 -0400 http://www.proactiveinvestors.com/companies/news/186663/tesla-gopro-fireeye-and-more-after-hours-186663.html
<![CDATA[News - Tesla shifts sharply into reverse after cutting production guidance for Model 3 ]]> http://www.proactiveinvestors.com/companies/news/186662/tesla-shifts-sharply-into-reverse-after-cutting-production-guidance-for-model-3-186662.html After declining sharply in regular trading yesterday, the stock of Tesla Inc (NASDAQ:TSLA) tanked some more after-hours in the wake of disappointing third quarter results.

The market was braced for a big earnings loss – though the red ink on the bottom line was of a more vivid hue than analysts had been expecting – but the real damage to the share price was done by news that the company had only shipped 222 Model 3 cars in the third quarter.

READ: Tesla to open factory in Shanghai with blessing of Chinese government

The Model 3 is Tesla’s latest model, and is aimed more at the mass market than its other models, but the company has experienced well-publicised difficulties in ramping up production to meet strong demand.

More than 450,000 people are on the Model 3 waiting list, and the company had targeted production of 20,000 Model 3 cars a month by the end of the year. That ambition has now gone by the wayside.

“Based on what we know now, we currently expect to achieve a production rate of 5,000 Model 3 vehicles per week by late Q1 2018, recognizing that our production growth rate is like a stepped exponential, so there can be large forward jumps from one week to the next,” the company said.

Deliveries of the Model 3 made up a small part of the 26,137 cars Tesla delivered in the third quarter.

Combined Model S and Model X deliveries in the quarter grew 18% globally from the preceding quarter and 4.5% versus the same quarter one year ago.

READ: Tesla fires hundreds of workers despite trying to ramp-up production

As for the loss per share, that weighed in at US$2.92, versus market expectations of a loss of US$2.45 per share.

Revenues rose to US$2.98bn from US$2.30bn a year earlier, which was ahead of market expectations of US$2.95bn.

Only one topic really mattered in the Tesla third-quarter financial results call for analysts held Wednesday afternoon: Model 3. In light… pic.twitter.com/QSHbMoseSS

— ???????? Jane Webster (@Jane__Webster) November 2, 2017

The company, which passed the milestone of delivering its 250,000th Tesla car during the quarter, said its Powerwall and Powerpack energy storage products were also experiencing growing demand.

“Based on the recent acceleration in order growth, we now expect that Model S and Model X are on pace for about 100,000 deliveries in 2017, an increase of 30% compared to 2016. Notwithstanding these increased deliveries, we plan to produce about 10% fewer Model S and Model X in Q4 compared to Q3 because of the reallocation of some of the manufacturing workforce towards Model 3 production. As a result, inventory level of finished Model S and X vehicles should continue to decline,” the company said in its outlook statement.

Capital expenditures are expected to be roughly US$1bn in the fourth quarter, driven largely by milestone payments on Model 3 production equipment, as well as Gigafactory 1, and further expansion of the company’s stores, service centers, delivery hubs and the Supercharger network.

The shares were down 4.5% at US$306.62 in after-hours trading, having closed at US$321.08 (down 3.2% on the day) in regular trading.

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Thu, 02 Nov 2017 08:13:00 -0400 http://www.proactiveinvestors.com/companies/news/186662/tesla-shifts-sharply-into-reverse-after-cutting-production-guidance-for-model-3-186662.html
<![CDATA[News - Tesla Model 3 production ramp-up the key issue in this evening's results statement ]]> http://www.proactiveinvestors.com/companies/news/186577/tesla-model-3-production-ramp-up-the-key-issue-in-this-evening-s-results-statement-186577.html Results from electric cars maker Tesla Inc (NASDAQ:TSLA) are likely to be all about the ramp-up of production of the new model 3.

The company has already confessed that production bottlenecks were hampering the launch of the car, but that did not stop it firing hundreds of workers last month after completing its annual performance reviews.

READ: Tesla fires hundreds of workers despite trying to ramp-up production

The company produced just 260 Model 3 cars in September, which was waaaaaaaaaay short of the 1,500 vehicles it had hoped to produce.

The company has previously projected that it would be producing 20,000 Model 3 cars a month by the end of the year, so it will be interesting to see whether the company sticks by that guidance when it releases its third quarter results after the bell on Wednesday.

"We believe the Model 3 ramp is one to two months behind schedule, but are not concerned as TSLA successfully ramped production of the Model S and Model X, which are more complicated vehicles, and we are confident TSLA will achieve its production targets over the intermediate term," declared Ben Kallo, an analyst at Baird.

The demand for the Model 3 is certainly there, so any delay in ramping up production is costing them money in cash flow terms.

READ: Tesla could miss its ‘iPhone moment’ warns Barclays if Model 3 production problems persist

NEW VIDEO: The one you've been waiting for! The very first in-depth look at the Tesla Model 3 #tesla #model3 https://t.co/nfAsiYJwi7 pic.twitter.com/IfeJcjL8Gx

— Model 3 Owners Club (@Model3Owners) October 27, 2017

More than 450,000 people are on the Model 3 waiting list and Tesla is under pressure to deliver, having fallen behind its own production targets and making just 260 cars last quarter.

READ: Tesla to open factory in Shanghai with blessing of Chinese government

There were reports last month that people on the waiting list were selling their US$1,000 reservations for as much as US$4,000 as new buyers looked for ways to jump the queue.

If you were to make a US$1,000 reservation today, Tesla reckons it would take about 18 months before you got to drive your new car.

Including other cars – such as the Model S and Model X – Tesla's founder Elon Musk expects the company to produce 10,000 cars this year.

Analysts expect the stock market glamor stock to post a quarterly loss of US$2.28 a share on revenue of US$2.9bn.

Tesla shares lost 2.44% to stand at US$323.56 each.

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Wed, 01 Nov 2017 07:49:00 -0400 http://www.proactiveinvestors.com/companies/news/186577/tesla-model-3-production-ramp-up-the-key-issue-in-this-evening-s-results-statement-186577.html
<![CDATA[News - Tesla to open factory in Shanghai with blessing of Chinese government ]]> http://www.proactiveinvestors.com/companies/news/186039/tesla-to-open-factory-in-shanghai-with-blessing-of-chinese-government-186039.html Tesla Inc (NASDAQ:TSL), which can’t make electric cars fast enough to meet demand, is to build a factory in Shanghai.

The Wall Street Journal (WSJ) reported over the weekend that the US company had reached an agreement with the Chinese government to build a production facility in the city’s free-trade zone.

READ: Tesla fires hundreds of workers despite trying to ramp-up production

Tesla revealed last year that it had sold more than US$1bn worth of cars in China, so it makes a lot of sense, in terms of cutting shipping costs and getting access to cheap labor, to have a factory in the People’s Republic but the WSJ understands that Tesla cars would still be regarded as imports, and therefore subject to a 25% import duty.

Shares in Tesla were up 1.3% in screen-based trading ahead of the official open on Wall Street.

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Mon, 23 Oct 2017 08:54:00 -0400 http://www.proactiveinvestors.com/companies/news/186039/tesla-to-open-factory-in-shanghai-with-blessing-of-chinese-government-186039.html
<![CDATA[News - Hasbro, Tesla, Lennox International, Seagate Technology - PRE-MARKET ]]> http://www.proactiveinvestors.com/companies/news/186029/hasbro-tesla-lennox-international-seagate-technology-pre-market-186029.html Electric car firm Tesla Inc (NASDAQ:TSLA) may well see its shares in focus on Monday after news over the weekend that the group has struck a deal with the Chinese government to build a production facility in the Shanghai free-trade zone.

The agreement would potentially give Tesla a unique edge in the world's largest market for electric vehicles.

Details of the deal, as reported by the Wall Street Journal, are still being worked out, it was reported.

Shares in Tesla after hours added 1.42% to US$350 each.

Elsewhere, Hasbro Inc (NASDAQ:HAS), the toy and  board games giant, saw shares tick a tad higher, after hours.

The firm beat third-quarter profit and revenue expectations, but provided a downbeat outlook.

Net income in the third quarter was US$265.6mln or US$2.09 a share from US$257.8mln or US$2.03 a share in the same period a year ago.

Tesla reportedly made deal to open a manufacturing facility in Shanghai https://t.co/ZTWBMDx7ix pic.twitter.com/pgPY3A5TMH

— TechCrunch (@TechCrunch) 23 October 2017

Elsewhere, Lennox International Inc (NYSE:LII) is likely to be in focus as analysts expect the firm to report quarterly earnings at US$2.61 per share on revenues of $1.06bn before the opening bell.

Lennox shares rose 0.51% to close at US$180.30 on Friday.

To technology, and Seagate Technology PLC (NASDAQ:STX) shares gained 1.23% to US$35.37 each on Monday. Analysts expect the firm to report quarterly earnings of US$0.86 per share on revenues of US$2.53bn before the opening bell.

Meanwhile , Wall Street expects Kimberly Clark Corp (NYSE:KMB) to report quarterly earnings of US$1.55 per share on revenues of US$4.66bn before the bell.

Kimberly Clark shares fell 1.77% to close at US$113.44 on Friday.

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Mon, 23 Oct 2017 07:37:00 -0400 http://www.proactiveinvestors.com/companies/news/186029/hasbro-tesla-lennox-international-seagate-technology-pre-market-186029.html
<![CDATA[News - Tesla fires hundreds of workers despite trying to ramp-up production ]]> http://www.proactiveinvestors.com/companies/news/185644/tesla-fires-hundreds-of-workers-despite-trying-to-ramp-up-production-185644.html Electric car giant Tesla Inc (NASDAQ:TSLA) has sacked hundreds of workers after completing its annual performance reviews even though it is looking to ramp up production of its new Model 3 sedan over the coming months.

The California-based group, which is owned by eccentric billionaire Elon Musk, confirmed the cuts in a statement but would not disclose exactly how many of its 33,000 workers had been given the boot.

Local media reports suggested that somewhere between 400 and 700 employees had lost their jobs.

Admin workers and sales reps were among those to fall victims to the annual clear out, as well as some involved in manufacturing operations.

There were others though who received bonuses and promotions following their reviews though, Tesla added.

Despite the mass firings, Tesla is still believed to be looking to hire hundreds more workers as it starts to ramp-up production ahead of the highly-anticipated Model 3’s mass roll-out.

More than 450,000 people are on the Model 3 waiting list and Tesla is under pressure to deliver having fallen behind its own production targets and making just 260 cars last quarter.

There were reports today (Monday), people on the waiting list were selling their US$1,000 reservations for as much as US$4,000 as new buyers looked for ways to jump the queue.

If you were to make a US$1,000 reservation today, Tesla reckons it would take about 18 months before you got to drive your new car.

Including other cars – such as the Model S and Model X – Musk expects the company to produce 10,000 cars this year.

Shares lost 1.61% in New York to US$349.13 each.

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Mon, 16 Oct 2017 07:55:00 -0400 http://www.proactiveinvestors.com/companies/news/185644/tesla-fires-hundreds-of-workers-despite-trying-to-ramp-up-production-185644.html
<![CDATA[News - Tesla could miss its ‘iPhone moment’ warns Barclays if Model 3 production problems persist ]]> http://www.proactiveinvestors.com/companies/news/185430/tesla-could-miss-its-iphone-moment-warns-barclays-if-model-3-production-problems-persist-185430.html Analysts at Barclays reckon Tesla Inc’s (NASDAQ:TSLA) early production problems with its new Model 3 electric car could deprive the firm of its ‘iPhone moment’.

Tesla – owned by billionaire Elon Musk – said last week that “production bottlenecks” were hampering the launch of its hotly-anticipated Model 3.

Like Apple Inc (NASDAQ:AAPL) had to do back in the day, Barclays says Tesla still needs to convince investors that aren’t “true believers”, adding that the issues might threaten the loyalty of those shareholders.

“There has been no shortage of investors (both true-believer-uber-bulls and those along for the ride) who have been bulled up on Tesla into the Model 3 launch as they believe Tesla’s ‘iPhone moment,’ in which the world appreciates the revolutionary potential of the product, will be realized by mid-2018,” the analysts wrote.

They go on to say that the Model 3 delays could push that moment back and give the likes of Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) the chance to fight back.

“Amid production delays, it could mean that the Model 3 ramp could be dragged into 2H’18 or even into 2019, when the competitive threat will likely become more imminent,” Barclays said.

“And in the face of increased competition, the ‘iPhone moment’ appears less certain.”

 

The Model 3 body line slowed down to 1/10th speed

A post shared by Elon Musk (@elonmusk) on

Oct 8, 2017 at 3:20pm PDT

Any significant delays or rise in competition would not only damage shareholder confidence, but also the share price, the analysts argue.

“Ultimately, we see risk that these production delays could negatively sway these [unconvinced] investors,” they wrote, though they expect any pressure at the moment to be short-term in nature.

Tesla shares were down 0.6% to US$355.59 in the pre-market.

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Wed, 11 Oct 2017 08:12:00 -0400 http://www.proactiveinvestors.com/companies/news/185430/tesla-could-miss-its-iphone-moment-warns-barclays-if-model-3-production-problems-persist-185430.html
<![CDATA[News - Tesla shares rev up as Morgan Stanley raises target price ]]> http://www.proactiveinvestors.com/companies/news/185359/tesla-shares-rev-up-as-morgan-stanley-raises-target-price-185359.html Tesla Inc. (NASDAQ:TSLA) shares steered higher after Morgan Stanley raised its target price on the electric car maker, saying it is well placed to address growing competition.

Morgan Stanley lifted the 12-month price target to US$379 from US$317, representing 11% upside from yesterday's close.

While ambitious plans by traditional automakers for developing electric vehicles have raised fears about more competition for Tesla, the company’s existing infrastructure footprint will be a key differentiator over coming years, according to Morgan Stanley analyst Adam Jonas.

"Infrastructure (of lack thereof) is the 'elephant in the room' of the EV revolution," wrote Jonas said in a note.

"Compared to other OEMs (original equipment manufacturers), Tesla has made the biggest proprietary investment in superchargers and destination chargers globally. In most communities, we believe this infrastructure is larger than it needs to be in preparation for the expansion of the serviceable and charge-thirsty fleet. Other OEMs will closely watch how consumers react to this infrastructure."

Shares in Tesla rose 1.75% to US$348.89 each in early US trading. 

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Tue, 10 Oct 2017 15:18:00 -0400 http://www.proactiveinvestors.com/companies/news/185359/tesla-shares-rev-up-as-morgan-stanley-raises-target-price-185359.html
<![CDATA[News - Tesla shares ease after pushing back launch of its electric semi truck ]]> http://www.proactiveinvestors.com/companies/news/185275/tesla-shares-ease-after-pushing-back-launch-of-its-electric-semi-truck-185275.html Tesla Inc (NASDAQ:TSLA) shares saw its shares dip  after the company announced  on Friday that the launch of its electric semi truck has been delayed.

Chief Executive Elon Musk said on Friday afternoon on Twitter that the launch date, initially scheduled for Octoner 26, has been pushed back to November 16.

 

Tesla Semi unveil now Nov 16. Diverting resources to fix Model 3 bottlenecks & increase battery production for Puerto Rico & other affected areas.

— Elon Musk (@elonmusk) 6 October 2017

And in an Instagram post, he said the Model 3 body line slowed down to 1/10th speed.

 

The Model 3 body line slowed down to 1/10th speed

A post shared by Elon Musk (@elonmusk) on

Oct 8, 2017 at 3:20pm PDT READ: Tesla says “production bottlenecks” has hit planned ramp-up for new Model 3, with deliveries up 4.5% in third quarter

He blamed the delay to issues pertaining to the production of Model 3 as well as a potential project to help Puerto Rico recover from Hurricane Maria.

"Diverting resources to fix Model 3 bottlenecks & increase battery production for Puerto Rico & other affected areas," Musk said.

In premarket, Tesla shares dipped 1.79% at US$350.50. In the regular session, they lost 3.91%  to US$342.94  each. 

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Mon, 09 Oct 2017 08:50:00 -0400 http://www.proactiveinvestors.com/companies/news/185275/tesla-shares-ease-after-pushing-back-launch-of-its-electric-semi-truck-185275.html
<![CDATA[News - Tesla rival says Elon Musk is “full of crap” ]]> http://www.proactiveinvestors.com/companies/news/185195/tesla-rival-says-elon-musk-is-full-of-crap-185195.html Tesla Inc.'s (NASDAQ:TSLA) boss Elon Musk is “full of crap” when it comes to self-driving cars, at least that’s according to a key executive at a rival automaker.

Scot Miller, who leads General Motor’s autonomous driving projects, is quoted in media reports suggesting that Musk’s Tesla Model 3 is not as advanced as some people think.

READ: Tesla says “production bottlenecks” has hit planned ramp-up for new Model 3, with deliveries up 4.5% in third quarter

“I think he’s full of crap,” Miller is quoted as saying of Elon Musk and the proposed price point of the new Tesla model.

“To be what an SAE Level Five full autonomous system is, I don’t think he has the content to do that.”

He is also quoted in an Australian press report as saying that it would be irresponsible to say that the Model 3 has fully autonomous capability.

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Fri, 06 Oct 2017 08:16:00 -0400 http://www.proactiveinvestors.com/companies/news/185195/tesla-rival-says-elon-musk-is-full-of-crap-185195.html
<![CDATA[News - Tesla shares rally after Nomura starts coverage with a 'buy' rating and chunky US$500 price target ]]> http://www.proactiveinvestors.com/companies/news/185055/tesla-shares-rally-after-nomura-starts-coverage-with-a-buy-rating-and-chunky-us500-price-target-185055.html Tesla Inc. (NASDAQ:TSLA) saw its shares rally in pre-market trading following falls in the previous session after a slightly cautious production update, helped by some positive broker comment.

Analysts at Nomura have started coverage on the electric vehicles group’s shares with a ‘buy’ rating and a chunky price target of US$500.

READ: Tesla says “production bottlenecks” has hit planned ramp-up for new Model 3

In a note to clients, they forecast "an unprecedented run-up in Tesla's revenue" to US$58bn in 2021, up from US$8bn in 2016.

The analysts said Tesla has "an insurmountable lead in vehicle range per dollar," benefits from "what we believe is a largely inferior competitive field," and will overcome Model 3 production constraints.

Nomura's price target, represents 44% upside potential from Tuesday's closing price.

In pre-market trading, the stock was up nearly 1% at US$351.45.

Tesla shares fell around 2% yesterday after the Silicon Valley firm said “production bottlenecks” has it behind in its planned ramp-up for its new Model 3 as it reported that deliveries were up by 4.5% year-on-year in the third quarter.

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Wed, 04 Oct 2017 08:19:00 -0400 http://www.proactiveinvestors.com/companies/news/185055/tesla-shares-rally-after-nomura-starts-coverage-with-a-buy-rating-and-chunky-us500-price-target-185055.html
<![CDATA[News - Azz Inc, Wells Fargo, Tesla, Paychex Inc Equifax, Endocyte ]]> http://www.proactiveinvestors.com/companies/news/184983/azz-inc-wells-fargo-tesla-paychex-inc-equifax-endocyte-184983.html It should be a fairly busy day on the corporate front, with plenty of newsflow after markets surged yesterday, despite the tragedy that unfolded in Las Vegas.

Azz Inc (NYSE:AZZ) will be in focus before the bell and shares dipped 1.29% to US$49.55 each after hours, having been higher earlier.

Wall Street expects the group to report quarterly earnings of $0.57 per share on revenues of $198.42mln. In the regular session, shares lost 3.19% to US$48.60.

It also promises to be a day of questions and answers for some in the USA. Hugely under-the -cosh credit score group Equifax (NYSE:EFX) will be on Capitol Hill on Tuesday for the first of three days of hearings over its massive security breach this year.

The event is made even more of a "white knuckle ride" as it comes the day after the group revealed the hack may have affected millions more customers than was stated before, bringing the total number to 145.5mln. Equifax shares added 3.17% on the day.

Banking group Wells Fargo (NYSE:WFC) is also in the frame and faces lawmakers on Tuesday. Shares shed 0.27% to US$53.32 on the day.

Chief executive  Tim Sloan reportedly plans to tell Congress that the bank failed to take decisive action to head off the scandal.

"We recognized too late the full scope and seriousness of the problems," Sloan will say in prepared testimony.

A powerful Democrat in Congress says regulators should consider shutting down Wells Fargo https://t.co/biSe1jXfi3 pic.twitter.com/WxvWdtvlyg

— CNN (@CNN) 2 October 2017

Elsewhere, Paychex Inc (NASDAQ:PAYX) shares added 0.23% after hours ahead of its results before the New York bell. The 'Street' expects it to have earned $0.6 per share on revenues of $816.30 million in its latest quarter.  In the regular session, shares added 3.29% toUS$61.78 each.

Shares of Endocyte Inc (NASDAQ:ECYT) surged over 49% to US$5.42 after hours after it reported the worldwide license of PSMA-617 from ABX GmbH.

The drug selectively delivers short-range beta-emitting radioactive isotope lutetium to tumor cells. Shares raced up over 56% on the day to US$5.68 each.

And California- based Tesla (NASDAQ:TSLA) shares saw its shares drop over 2% as it perhaps unsurprisingly in some eyes, the electric cars firm reported disappointing Model 3 delivery figures for the third quarter. On the day, Tesla shares accelerated 1.18% higher at US$345.56 each.

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Tue, 03 Oct 2017 07:56:00 -0400 http://www.proactiveinvestors.com/companies/news/184983/azz-inc-wells-fargo-tesla-paychex-inc-equifax-endocyte-184983.html
<![CDATA[News - Tesla says “production bottlenecks” has hit planned ramp-up for new Model 3, with deliveries up 4.5% in third quarter ]]> http://www.proactiveinvestors.com/companies/news/184955/tesla-says-production-bottlenecks-has-hit-planned-ramp-up-for-new-model-3-with-deliveries-up-45-in-third-quarter-184955.html Tesla Inc (NASDAQ:TSLA) shares dropped in pre-market trading after the electric cars firm said “production bottlenecks” has left the firm behind its planned ramp-up for its new Model 3 as it reported that deliveries were up by 4.5% year-on-year in the third quarter.

In after-market trading, Tesla shares were around 2.4% to US$333.25.

In a statement after New York trading hours,Tesla said it delivered 26,150 vehicles in the third quarter, including 14,065 Model S vehicles and 11,865 Model X cars, up 17.7% from the second quarter of this year.

READ: Tesla may have struggled to ramp-up Model 3 production in third quarter, broker says

But the company delivered just 220 Model 3 sedans, having produced 260 during the quarter. Production of the Model 3, which starts at $35,000 - half the starting price of Tesla’s Model S – began in July

Tesla had said in its second quarter financial report that it expects “to achieve a rate of 5,000 Model 3 vehicles per week by the end of 2017.”

The automaker also said it expects at some point in 2018 to further ramp to a rate of “10,000 Model 3 vehicles per week,” and an annual production rate in excess of 500,000 vehicles.

READ: Elon Musk hopes taking a trip to Mars will be a thing by 2024

In its third quarter statement, Tesla said: “It is important to emphasise that there are no fundamental issues with the Model 3 production or supply chain.”

It added:  “We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near term.”

Tesla said it was on track to deliver around 100,000 S and X models this year.

 -- Updates share price --

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Tue, 03 Oct 2017 02:31:00 -0400 http://www.proactiveinvestors.com/companies/news/184955/tesla-says-production-bottlenecks-has-hit-planned-ramp-up-for-new-model-3-with-deliveries-up-45-in-third-quarter-184955.html
<![CDATA[News - Tesla may have struggled to ramp-up Model 3 production in third quarter, broker says ]]> http://www.proactiveinvestors.com/companies/news/184866/tesla-may-have-struggled-to-ramp-up-model-3-production-in-third-quarter-broker-says-184866.html Electric car maker Tesla Inc (NASDAQ:TSLA) is due to report third quarter car deliveries next week, including the recently launched Model 3.

Broker Baird speculated that the company may already be slipping behind market expectations, and has penciled in 300 to 400 model 3 vehicles versus the market's forecast of around 500.

Tesla has held its hand up and admitted that the third quarter would likely prove a challenging one in terms of ramping up production of the new model, and said the fourth quarter would see production start to scale-up.

“We believe Q3 will be the most challenging part of the Model 3 production ramp,” Baird said.

If it does miss its targets and that leads to a share price fall, the analysts would be inclined to buy on weakness.

Shares in Tesla were up 0.5% on Friday afternoon and are up 60% this year.

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Fri, 29 Sep 2017 15:32:00 -0400 http://www.proactiveinvestors.com/companies/news/184866/tesla-may-have-struggled-to-ramp-up-model-3-production-in-third-quarter-broker-says-184866.html
<![CDATA[News - Elon Musk hopes taking a trip to Mars will be a thing by 2024 ]]> http://www.proactiveinvestors.com/companies/news/184852/elon-musk-hopes-taking-a-trip-to-mars-will-be-a-thing-by-2024-184852.html Elon Musk reckons one day we will be able to travel anywhere on earth within an hour for the same price of a plane ticket.

In fact, a journey from London to New York would take just 29 minutes.

The Tesla Inc (NASDAQ:TSLA) and SpaceX owner made the promise at the International Astronautical Congress (IAC) in Australia.

Musk told the audience that he was refocusing SpaceX to work on one type of vehicle – called the BFR – which he said it would start building next year.

BFR is also capable of Earth to Earth transportation. Anywhere on Earth in under an hour → https://t.co/XxUeN9KBKp

— SpaceX (@SpaceX) September 29, 2017

The ships would also be able to travel to Mars and the billionaire hopes it can start sending people to Mars in 2024.

He first laid out his ambitious plans in 2016 but returned this year with more detail. For example, the ships have been scaled back to just 106 metres in height and 9 metres wide.

“We’ve already started building the system. The tooling for the main tanks is being ordered, and the facility is being built. We’ll start construction of the first ship by around the second quarter of next year, within six to nine months,” Musk told the audience.

He added that by developing one ship – the BFR – which can go to Mars as well as take people around the world, it would make the project affordable for the company and the customers.

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Fri, 29 Sep 2017 10:10:00 -0400 http://www.proactiveinvestors.com/companies/news/184852/elon-musk-hopes-taking-a-trip-to-mars-will-be-a-thing-by-2024-184852.html
<![CDATA[News - Tesla shares ease as Bernstein suggests botched Model 3 roll-out could trigger a “moment of panic” ]]> http://www.proactiveinvestors.com/companies/news/184763/tesla-shares-ease-as-bernstein-suggests-botched-model-3-roll-out-could-trigger-a-moment-of-panic-184763.html Tesla Inc. (NASDAQ:TSLA) saw its shares ease in early trading after analysts at broker Bernstein suggested that a botched roll-out of the electric car maker’s crucial  Model 3 could trigger a “moment of panic” for the stock.

In a note to clients, the Bernstein analysts pointed out that investors have given Tesla a vote of confidence recently despite the Silicon Valley firm’s substantial cash burn, which they estimate will have reached a cumulative US$10.6bn by the end of the year.

READ: Tesla "groupthink" challenged by Jefferies

They said: “Bears argue that this level of capital spending is unprecedented and that Tesla will inevitably run out of cash. Meanwhile, bulls argue that Tesla’s spending is par for course among high-growth companies.”

Tesla unveiled the long-awaited Model 3 in late July, with deliveries expected to ramp up in the fourth quarter.

The Bernstein analysts said: “If Tesla fails to execute in the next few quarters, i.e., low Model 3 gross margins exacerbate the company’s negative cash flow, or Model 3 quality issues overwhelm Tesla service centers and undermine the brand, then we may ultimately see the ‘moment of panic’ in the markets resulting in the possible price break in the stock and a drying up of liquidity,”

Bernstein maintained a ‘market perform’ rating on Tesla shares, with a share target price of US$265, which would represent around 23% downside from Wednesday’s closing price.

In early New York trading, Tesla’s shares were 1.1% lower at US$337. The stock has gained more than 60% so far this year.

In the regular session, shares fell 1.27% to US$336.64 each.

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Thu, 28 Sep 2017 08:30:00 -0400 http://www.proactiveinvestors.com/companies/news/184763/tesla-shares-ease-as-bernstein-suggests-botched-model-3-roll-out-could-trigger-a-moment-of-panic-184763.html
<![CDATA[News - Tesla's work with Advanced Micro Devices over new chip throws spotlight on AI market ]]> http://www.proactiveinvestors.com/companies/news/184394/tesla-s-work-with-advanced-micro-devices-over-new-chip-throws-spotlight-on-ai-market-184394.html News of Tesla working with Advanced Micro Devices Inc (NASDAQ:AMD) over self-driving cars has thrown the latter company into focus with analysts and the general artificial intelligence (AI) market under the spotlight.

AI is a big topic at the moment and one Tesla found Elon Musk has certainly been vocal about in recent weeks.

READ- Tesla, Advanced Micro Devices, Facebook, Nvidia Corp and more- AFTER HOURS READ- Elon Musk’s Tesla whips up micro-chip market, AMD rises while NVIDIA takes a hit

He has warned of the danger of racing ahead with the  AI technology too fast, saying it  could be the most likely cause of  a third world war.

That said, his group's current work with AMD, however, is to develop an AI chip of its own for use in a rapidly emerging space - that of the driverless car.

The California-based electric car giant has reportedly more than 50 employees involved in the project.

The USA is generally considered to be leading the charge towards AI , with tech giants like Google (NASDAQ:GOOGL) and Microsoft funneling large amounts of cash into research and development projects.

Analysts have been quick to jump on the AMD/Tesla news and mull what it may mean for the future of AI.

"The Tesla/AMD move has disruptive implications to the multi-billion self-driving market," said  Rosenblatt Securities in a note entitled "Tesla AI Move With AMD - Game Changer".

The broker repeated a 'buy' on AMD shares and $22 target price - compared to the current price of $13.70.

Jefferies reckons the Tesla news is a big win for AMD as it would support its thesis that with its parallel processing GPUs, AMD is a beneficiary of the next big shift in technology.

The US house repeated a 'buy' on AMD and $19 price target for the stock.

Tesla shares fell 0.5% on the day to $372.62.

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Thu, 21 Sep 2017 11:52:00 -0400 http://www.proactiveinvestors.com/companies/news/184394/tesla-s-work-with-advanced-micro-devices-over-new-chip-throws-spotlight-on-ai-market-184394.html
<![CDATA[News - Elon Musk’s Tesla whips up micro-chip market, AMD rises while NVIDIA takes a hit ]]> http://www.proactiveinvestors.com/companies/news/184372/elon-musks-tesla-whips-up-micro-chip-market-amd-rises-while-nvidia-takes-a-hit-184372.html Elon Musk is seemingly shaking up the microchip market, sending Advanced Micro Devices Inc (NASDAQ:AMD) and Nvidia Corporation (NASDAQ:NVDA) stock in opposite directions.

AMD shot up around 4% in Wednesday’s dealing, whereas Nvidia fell back as much as 2%.

It followed reports on Wednesday that Musk’s electric car pioneer Tesla Inc (NASDAQ:TSLA) is working on a deal with AMD for a project to create its own artificial intelligence chips for its planned self-driving plans.

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Thu, 21 Sep 2017 11:44:00 -0400 http://www.proactiveinvestors.com/companies/news/184372/elon-musks-tesla-whips-up-micro-chip-market-amd-rises-while-nvidia-takes-a-hit-184372.html
<![CDATA[News - Tesla, Advanced Micro Devices, Facebook, Nvidia Corp and more - AFTER HOURS ]]> http://www.proactiveinvestors.com/companies/news/184375/tesla-advanced-micro-devices-facebook-nvidia-corp-and-more-after-hours-184375.html There was a mixed finish on Wall Street yesterday, but the S&P 500 and Dow reached new highs. After the bell, Advanced Micro Devices Inc (NASDAQ:AMD) and tech stocks generally appeared to be in play.

Shares in AMD rose 2.77% after the bell after it had  added earlier 5% in the regular session.

It came after yesterday, it was reported that electric vehicle giant and Elon Musk's baby Tesla (NASDAQ:TSLA)  was working with AMD to develop its own AI (artificial intelligence) chip for self-driving cars.

Elsewhere, Nvidia Corp (NASDAQ:NVDA) shares gained over 2% to $181,90 after hours as it got the other end of the news. It was reported that Tesla will reduce its reliance on the company in favor of AMD's chips, according to CNBC's reporting.

In the  oil world, Anadarko Petroleum Corporation (NYSE:APC) saw shares  surge 4.69% to $46.91 after the bell after it authorised a US$2.5 billion share-repurchase program.

Back to tech and social network titan Facebook  (NASDAQ:FB) saw shares drop 0.10% after the bell as it told investors that it would work to prevent advertising targeted at derogatory terms.

Tesla working with AMD to develop chip for self-driving car: CNBC https://t.co/xSD6TBF0I2 pic.twitter.com/KGkAea22uw

— Reuters Top News (@Reuters) 20 September 2017 ]]>
Thu, 21 Sep 2017 07:30:00 -0400 http://www.proactiveinvestors.com/companies/news/184375/tesla-advanced-micro-devices-facebook-nvidia-corp-and-more-after-hours-184375.html
<![CDATA[News - Tesla "groupthink" challenged by Jefferies ]]> http://www.proactiveinvestors.com/companies/news/184207/tesla-groupthink-challenged-by-jefferies-184207.html Tesla Inc (NASDAQ:TSLA) may produce high-performance cars but broker Jefferies expects the stock to under-perform.

In a note signalling the initiation of coverage of the electric car manufacturer, the broker says scaling up production is still the main challenge for Tesla.

“Achievements to-date and vision are impressive, but we don't think Tesla's vertically integrated business model can be scaled up as profitably and quickly as consensus thinks and valuation multiples imply,” Jefferies said.

Its discounted cash flow projections suggest a stock value of US$280, versus a current price of US$385.

Jefferies does not believe that Tesla can deliver the gross margins of 30-35% that one would expect from a vertically integrated business such as Tesla.

“This view  is driven by the following factors: 1) product mix is declining faster than battery size and cost; 2) battery manufacturing is set to be at best a low-margin business given price deflation and material cost inflation; and 3) depreciation is catching up quickly,” the broker said.

READ: Tesla set to launch electric commercial truck in late October, says Elon Musk Losses ahead?

It reckons the company will be loss-making until 2020, and notes that its loss per share forecast for 2019 of U$3.26 contrasts markedly with the median forecast of positive earnings per share of US$2.4 among analysts who cover the glamour stock.

“We find consensus too optimistic about depreciation, SG&A [admin & selling costs] compression matching the levels of disintegrated auto OEMs [original equipment manufacturers], interest expense and Tesla's ability to wean the market off Resale Value Guarantees. Tesla may, however, generate cash before earnings given the structure of leasing earnings and deferred revenue accounting,” the Jefferies number crunchers said.

On the plus side, Jefferies believes external competition is distant, but it is concerned about a herd mentality among the broking community when it comes to assessing the growth in demand, with the ever-present dangers of a rise in vehicle costs prompting a slump in vehicle sales and regulatory changes leading to delayed purchasing decisions.

Long story short, Tesla is enjoying the sort of valuation of what Jefferies calls “spiritual peers” like Amazon and Apple, but the difference is those companies feature capital-light business models with a return on investment capital that Tesla can only dream of with its current business model.

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Tue, 19 Sep 2017 04:32:00 -0400 http://www.proactiveinvestors.com/companies/news/184207/tesla-groupthink-challenged-by-jefferies-184207.html
<![CDATA[News - Tesla set to launch electric commercial truck in late October, says Elon Musk ]]> http://www.proactiveinvestors.com/companies/news/184008/tesla-set-to-launch-electric-commercial-truck-in-late-october-says-elon-musk-184008.html Tesla is set to launch the “beast” that is its electric semi-trailer truck in late October, the company’s chief executive Elon Musk said.

The so-called Telsa Semi, which is expected to be equipped with self-driving technology, has been “tentatively” scheduled for unveiling and test rides one month behind schedule on 26 October in Hawthorne, California.

“Worth seeing this beast in person. It's unreal,” Musk said on Twitter.

Tesla Semi truck unveil & test ride tentatively scheduled for Oct 26th in Hawthorne. Worth seeing this beast in person. It's unreal.

— Elon Musk (@elonmusk) 13 September 2017

The battery-powered heavy-duty commercial truck is reported to have a working range of 200 to 300 miles, making it more suitable for inner-city transport than long-distance deliveries.

In comparison, conventional diesel trucks can typically travel up to 1,000 miles on a single tank of fuel.

Tesla had initially said it expects to launch the truck in September along with plans for a minibus. The company is aiming to have the two vehicles in production in less than five years.

Musk has previously hinted that Telsa Semi could drive itself, saying it would deliver a “substantial reduction in the cost of cargo transport” while increasing safety”.

Eliminating the need for drivers and replacing them with technology could reduce the number of crashes as human error is estimated to cause 90% of road accidents. 

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Thu, 14 Sep 2017 14:08:00 -0400 http://www.proactiveinvestors.com/companies/news/184008/tesla-set-to-launch-electric-commercial-truck-in-late-october-says-elon-musk-184008.html
<![CDATA[News - Tesla Inc, Amazon.com, Lennar Corp and Expedia Inc - PRE-MARKET ]]> http://www.proactiveinvestors.com/companies/news/184000/tesla-inc-amazoncom-lennar-corp-and-expedia-inc-pre-market-184000.html A mixed start is in the offing for Wall Street, according to futures and electric car giant  Tesla (NASDAQ:TSLA) is, not for the first time,  putting it head up above the parapet.

Shares in Elon Musk's baby nudged up 0.15% after the bell, as it emerged the electric vehicle maker will unveil its planned semi-truck in late October, a month later than planned.

 

Get ready to meet @TeslaMotors'"beast" of a semi-truck. https://t.co/v1GVJla0K1

— CNN Tech (@cnntech) 14 September 2017

Elsewhere, Lennar Corp (NYSE:LEN) shares were  unchanged after hours as the homebuilder said its houses in areas impacted by Hurricanes Irma and Harvey did not incur any flood damage, despite these making up about 40% of Lennar's homebuilding revenue.

However, the company said around 120 new orders and deliveries during the recently completed third quarter were impacted and about 700 delays will be seen in the current quarter.

Meanwhile, Expedia Inc shares (NASDAQ:EXPE) saw shares gain 0.11% to $145.50 after hours as it struck an alliance with the British travel company Thomas Cook.

Under terms of the deal, Expedia becomes Thomas Cook's preferred hotel provider for certain holiday sales.

Last but not least, online  retail giant Amazon.com (NASDAQ:AMZN) shed 0.05%  to $999.15 as it emerged the group is planning to build a 1mln sq ft warehouse near Mexico City.

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Thu, 14 Sep 2017 08:19:00 -0400 http://www.proactiveinvestors.com/companies/news/184000/tesla-inc-amazoncom-lennar-corp-and-expedia-inc-pre-market-184000.html
<![CDATA[News - China’s traditional engine ban plan augurs well for battery metals sector ]]> http://www.proactiveinvestors.com/companies/news/183864/chinas-traditional-engine-ban-plan-augurs-well-for-battery-metals-sector-183864.html China's plans to ban the internal combustion engine is good news for the battery metals sector, reckons broker Eight Capital.

In a note, analyst David Talbot said while no specific date had been set he expects the engine ban to coincide with China’s commitment to an emissions cap by 2030.

Of course China isn't the only country to go down this track.

Norway plans to go all electric by 2025, while the UK aims to ban sales of diesel and gas cars by 2040.

A third of the world's car market

According to Bloomberg Intelligence, China represents a third of the world's car market and almost 80% of the global auto market is pushing towards phasing petrol cars and adopting electric ones.

Talbot notes that future sales growth in China will be made up of electric cars and hybrids, and as many as 800,000 charging stations will be built next year. This will of course directly benefit China's electric vehicle makers.

In addition, global car making giant VW has pledge to spend €20bn to develop its electric models to market by 2030 and promising to devote another €50bn into the batteries required to power the cars.

Batteries are expensive...

Batteries are the main expense when making an electric vehicle and the industry is committed to drive down that cost. They have already fallen substantially in the last seven years to US$270/kWh, while energy density has increased.

A reliable supply of lithium (cathode), cobalt (cathode), and graphite (anode) will be necessary to secure a global electric vehicle revolution.

The broker's top lithium stock picks, all of which are rated 'buy' are Nemaska Lithium (TSE:NMX), Lithium Americas Corp (TSE:LAC) and Advantage Lithium (CVE:AAL).

In graphite, it has NextSource Materials Inc (TSE:NEXT) and Northern Graphite Corp (CVE:NGC), and Mason Graphite Inc (CVE:LLG) - all rated 'buy'.

For cobalt, it highlights eCobalt Solutions Inc (TSE:ECS).

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Tue, 12 Sep 2017 15:40:00 -0400 http://www.proactiveinvestors.com/companies/news/183864/chinas-traditional-engine-ban-plan-augurs-well-for-battery-metals-sector-183864.html
<![CDATA[News - Tesla helps customers flee Hurricane Irma in Florida by extending battery life of electric cars ]]> http://www.proactiveinvestors.com/companies/news/183762/tesla-helps-customers-flee-hurricane-irma-in-florida-by-extending-battery-life-of-electric-cars-183762.html Tesla Inc (NASDAQ:TSLA) has provided customers fleeing Hurricane Irma with a free software update that extends the battery capacity of their electric vehicles.

The temporary update added around 30 to 40 miles to the driving range of the 75-kilowatt-hour Model S sedans and Model X SUVs.

“Cars with a 75-kilowatt-hour battery pack were previously software limited to 210 miles of driving range per single charge and will now get 249 miles, the full range capacity of the battery,” the company wrote on a blog.

Businesses doing the right thing: #Tesla has transmitted free software updates to extend range of cars fleeing Hurricane #Irma. pic.twitter.com/ohEuRV57uZ

— Phil Soper (@PhilSoper) 11 September 2017

The emergency measure came after a Florida-based customer requested a temporary upgrade to help flee Hurricane Irma.

People were ordered to evacuate their homes before the hurricane hit Florida Keys on Sunday but many reported troubles with leaving the area due to traffic jams, empty petrol stations and expensive flights.

Before reaching Florida, the hurricane had devastated 10 Caribbean countries and territories, killing about 23 people.

Tesla introduced its cheaper Model X and Model S vehicles last year with an 75 KWH battery that was software locked to use 80% of that available power. Drivers could unlock extra battery capacity with an update for an extra US$3,000.

Tesla rallies on report China will ban petrol and diesel cars

Meanwhile, Tesla shares received a boost after a report of a possible China ban on the production and sale of diesel and petrol cars and vans.

China, the world’s largest auto market, has started research but is yet to decide a date for the ban, Chinese news agency Xinhua reported.

"Those measures will certainly bring profound changes for our car industry's development," the country's vice minister of industry, Xin Guobin, told Xinhua.

Fortune’s David Z. Morris said Telsa could be a big winner in this development as it makes headway in the Chinse market with the rolling out its lower priced Model 3 sedan.

Bloomberg reported that nearly 80% of the global auto market is now looking to phase out petroleum cars and adopt electric vehicles.

The UK and France have vowed to ban the sale of new gasoline and diesel cars by 2040.

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Mon, 11 Sep 2017 13:47:00 -0400 http://www.proactiveinvestors.com/companies/news/183762/tesla-helps-customers-flee-hurricane-irma-in-florida-by-extending-battery-life-of-electric-cars-183762.html
<![CDATA[News - Tesla truck launch to be “biggest catalyst” in trucking for decades ]]> http://www.proactiveinvestors.com/companies/news/183624/tesla-truck-launch-to-be-biggest-catalyst-in-trucking-for-decades-183624.html Tesla Inc (NASDAQ:TSLA) is set to unveil its new semi-truck later this month and analysts at Morgan Stanley think it could be the “biggest catalyst in trucking in decades”.

Ravi Shanker and Adam Jonas expect Tesla’s new truck to force other vehicle manufacturers to reveal their own electric truck plans, sparking renewed interest in the industry.

Since Elon Musk first tweeted about Tesla’s plans to make an electric truck back in April, rumours have spread that it will be able to drive itself and automatically move in “platoons” with other trucks.

“We have high confidence that it could have significant autonomous/autopilot capabilities as well,” the Morgan Stanley analysts said in the note.

Shanker and Jonas expect the Tesla truck to retail at around US$100,000 with the batteries to be leased separately.

Given that a 600-700 mile range would require too large a battery, the analysts expect it to be able to travel for around 300 miles before it needs recharging.

To combat the relatively short range, they speculate that Tesla could introduce “optional battery swapping or very rapid supercharging/flash charging”.

The semi-truck is expected to go on sale in 2020 orders could start when the prototype is revealed later this month.

Shanker and Jones reckon Tesla will deliver 25,000 units a year and generate around 25 US cents per mile from leasing batteries.

Based on these calculations, the two expect the trucks to generate sales of almost US$12bn by 2028.

Tesla shares were up 0.16% to US$345.10 in early deals on Thursday, before adding over 2% to go to $351.75 each.

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Thu, 07 Sep 2017 10:12:00 -0400 http://www.proactiveinvestors.com/companies/news/183624/tesla-truck-launch-to-be-biggest-catalyst-in-trucking-for-decades-183624.html