http://www.proactiveinvestors.com Proactiveinvestors RSS feed en Sat, 23 Sep 2017 15:59:20 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![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.

]]>
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.

]]>
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.

]]>
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. 

]]>
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.

]]>
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).

]]>
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.

]]>
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.

]]>
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
<![CDATA[News - Tesla boss Elon Musk plays down North Korea threat and says AI could lead to World War III ]]> http://www.proactiveinvestors.com/companies/news/183470/tesla-boss-elon-musk-plays-down-north-korea-threat-and-says-ai-could-lead-to-world-war-iii-183470.html Tesla Inc. boss Elon Musk has warned that artificial intelligence (AI) could lead to World War III.

In a Twitter post, Musk said: “China, Russia, soon all countries (with) strong computer science. Competition for AI superiority at national level most likely cause of WW3 (in my opinion).”

China, Russia, soon all countries w strong computer science. Competition for AI superiority at national level most likely cause of WW3 imo.

— Elon Musk (@elonmusk) 4 September 2017

His remarks came on the back of a statement from Russian President Vladimir Putin that AI is the future for "all humankind" and presents “colossal opportunities” but comes with threats that are “difficult to predict”.

“Whoever becomes the leader in this sphere will become the ruler of the world,” Putin had said.

Musk said was not only worried about the possibility of a world leader starting a war, but of one the AIs deciding that "a prepemptive strike is most probable path to victory".

May be initiated not by the country leaders, but one of the AI's, if it decides that a prepemptive strike is most probable path to victory

— Elon Musk (@elonmusk) 4 September 2017

He added that he was less concerned about North Korea launching nuclear missiles, arguing that any action “would be suicide” for the nation. 

North Korea “should be low on our list of concerns for civilizational existential risk,” Musk said in tweet

Musk believes AI is “vastly more risky” than North Korea’s threats.

NK launching a nuclear missile would be suicide for their leadership, as SK, US and China wd invade and end the regime immediately

— Elon Musk (@elonmusk) 4 September 2017

Musk has previously raised concerns that AI needs to be regulated properly and ensure public safety.

Last month he was one of 116 signatories of an open letter calling for a ban by the United Nations of lethal AI weapons.

“Once developed, lethal autonomous weapons will permit armed conflict to be fought at a scale greater than ever, and at timescales faster than humans can comprehend,” the letter read.

“These can be weapons of terror, weapons that despots and terrorists use against innocent populations, and weapons hacked to behave in undesirable ways. “

“We do not have long to act. Once this Pandora’s box is opened, it will be hard to close.”

The series of tweets from Musk about AI drew criticism from Facebook chief executive Mark Zuckerberg who called the comments “pretty irresponsible.”

Musk hit back saying Zuckerberg’s understanding on AI’s responsibility is “limited”.

]]>
Tue, 05 Sep 2017 14:19:00 -0400 http://www.proactiveinvestors.com/companies/news/183470/tesla-boss-elon-musk-plays-down-north-korea-threat-and-says-ai-could-lead-to-world-war-iii-183470.html
<![CDATA[News - Tesla being investigated by National Labor Relations Board for allegedly intimidating and harassing union organisers ]]> http://www.proactiveinvestors.com/companies/news/183318/tesla-being-investigated-by-national-labor-relations-board-for-allegedly-intimidating-and-harassing-union-organisers-183318.html Tesla Inc (NASDAQ:TSLA) is in the sights of the National Labor Relations Board (NLRB) after the body said it is investigating the electric-car company for allegedly intimidating and harassing a union organiser.

Workers’ complaints, filed with the NLRB in April but dating back to a series of events ranging from November to March, refer to efforts with the United Auto Workers to form a union at Tesla’s plant in Fremont, California - a move the car firm’s management opposes.

Media reports said that, according to NLRB documents, workers distributing union literature were told by security to leave the premises, employees were surveilled and “interrogated,” and managers attempted to prohibit workers from discussing union activities.

READ: Tesla beaten to the launch of a battery-powered commercial truck by Cummins

In a letter to Tesla dated April 18, the NLRB warned that because of the nature of the alleged unfair labour practices, an injunction against the company may be appropriate, the reports said.

In a statement, Tesla strongly denied the allegations, calling the them “baseless” and an attempt “to discredit Tesla publicly in the media.”

Tesla shares fell 0.41% on the day.

]]>
Fri, 01 Sep 2017 09:32:00 -0400 http://www.proactiveinvestors.com/companies/news/183318/tesla-being-investigated-by-national-labor-relations-board-for-allegedly-intimidating-and-harassing-union-organisers-183318.html
<![CDATA[News - Tesla beaten to the launch of a battery-powered commercial truck by Cummins ]]> http://www.proactiveinvestors.com/companies/news/183177/tesla-beaten-to-the-launch-of-a-battery-powered-commercial-truck-by-cummins-183177.html Tesla Inc (NASDAQ:TSLA) has been beaten to the launch of a battery-powered commercial truck by Cummins Inc (NYSE:CMI) .

The NYSE listed firm - a leading maker of diesel and natural gas engines for commercial trucks – has unveiled a heavy-duty truck cab featuring an advanced 140 kWh battery pack that it will start selling from 2019.

With a 100-mile range, the Cummins electric power train is being targeted at urban delivery vehicles, although it can be recharged in about an hour at a charging station.

Cummins is to supply a fully integrated battery electronics system, buying the cells from an unnamed provider, with production to begin in 2019.

Cummins' announcement comes a few weeks ahead of electric vehicle giant Tesla's planned launch of an electric truck Tesla makes its own battery cells at factory in Nevada.

Tesla shares added 1.68% in New York on the day to  $353.18.

]]>
Wed, 30 Aug 2017 08:59:00 -0400 http://www.proactiveinvestors.com/companies/news/183177/tesla-beaten-to-the-launch-of-a-battery-powered-commercial-truck-by-cummins-183177.html
<![CDATA[News - Tesla price targets raised as Model 3 mania builds ]]> http://www.proactiveinvestors.com/companies/news/182401/tesla-price-targets-raised-as-model-3-mania-builds-182401.html Analysts at Baird and Morgan Stanley have raised their price targets on electric car maker, Tesla Inc (NASDAQ:TSLA).

Baird, which at the beginning of the year tipped Tesla to be one of the stocks of the year, is clearly still a fan, even after the stock had risen two-thirds year-to-date to around US$358 at Friday’s close.

Baird’s Ben Kallo thinks the stock will go all the way up to US$411 in the next 12 months, on expectations of strong demand for the company’s new Model 3.

Some doubts remain in the industry remain about Tesla’s ability to ramp-up production to the levels it has targeted, but few doubt the demand for the cars is there, though Kallo’s view is that the market for the electric car is bigger than widely thought.

Meanwhile, Adam Jonas at Morgan Stanley now reckons the company will churn out 1,500 Model 3s in the current quarter, having previously expected shipments would not start until the fourth quarter.

Jonas reckons Tesla will have shipped 106,552 Model 3 units by the end of the year, up from his original estimate of 96,219.

Jonas’s production estimate for 2018 has been raised to 120,000 units from 90,000.

The Morgan Stanley price target was edged up to US$317 from US$305, with the bull case – which assumes everything clicks for the electric car maker – rising to US$526 from US$511.

Shares in Tesla rose 2.3% to US$365.88 in early deals.

]]>
Mon, 14 Aug 2017 09:52:00 -0400 http://www.proactiveinvestors.com/companies/news/182401/tesla-price-targets-raised-as-model-3-mania-builds-182401.html
<![CDATA[News - Tesla plans US$1.5bn bond offer to fund production of Model 3 electric car ]]> http://www.proactiveinvestors.com/companies/news/182061/tesla-plans-us15bn-bond-offer-to-fund-production-of-model-3-electric-car-182061.html Tesla Inc. (NASDAQ:TSLA) plans to raise about US$1.5bn in a bond offering to strengthen its balance sheet following the launch of its new electric vehicle, the Model 3.

The electric-car maker will sell senior unsecured debt obligations set to mature in 2025.

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

"Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes," the company said.

The news comes a week after the company said it may use debts to grow its funds as it seeks to ramp up production of the Model 3, its first mass-market electric vehicle with a base price of US$35,000.

Telsa has received an average of 1,800 advance reservations per day for the Model 3 since its launch in late July.  

Chief executive Elon Musk said at the time of the launch that the company faces at least six months of “manufacturing hell” as it increases production of the Model 3.

Telsa expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.

At the end of June, Tesla had total cash on hand of US$3.0bn, compared to US$4.0bn the previous quarter. Total debt at the end of the period was US$8.10bn.

On the back of its production ramp, Telsa’s cash burn is expected to reach US$2bn this year.

The news came at the same time as five members of the Italian Tesla owners club claimed to have travelled a record distance of 670 miles on a single charge of the Telsa Model S.

The five drivers achieved the feat by using as little energy as possible by maintaining a constant speed, using low rolling-resistance tyres, not using air conditioning and trying not to apply the brakes.

Shares rose 0.05% to US$357.10 in US pre-market trading. 

]]>
Mon, 07 Aug 2017 12:38:00 -0400 http://www.proactiveinvestors.com/companies/news/182061/tesla-plans-us15bn-bond-offer-to-fund-production-of-model-3-electric-car-182061.html
<![CDATA[News - Tesla CEO Elon Musk says demand for Model 3 is like serving hungry customers hamburgers ]]> http://www.proactiveinvestors.com/companies/news/181913/tesla-ceo-elon-musk-says-demand-for-model-3-is-like-serving-hungry-customers-hamburgers-181913.html Tesla Inc. (NASDAQ:TSLA) chief executive Elon Musk said about 63,000 people have cancelled their orders for the Model 3 as he presented the electric car maker’s second quarter earnings.

Total orders for the group’s first mass-market electric vehicle have fallen to 455,000 from 518,000.

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 on Friday.

READ: Tesla's Elon Musk talks of "unrelenting stress" on Twitter

“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 in an earnings call.

Deliveries of the Model 3 will begin in autumn. Those who put down a deposit now for the vehicle are unlikely to receive them until the end of 2018, according to estimates.

Difficult production ramp ahead, says Musk READ:Tesla's Model 3 rolls off the production line as Musk admits company faces production challenge

Telsa expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.

"What we have ahead of us, of course, is an incredibly difficult production ramp," Musk said.

"This is maybe the best I've ever felt about Tesla, to be frank. Last week stressed the hell out of me."

Second quarter production and sales gain

In the second quarter, Telsa’s vehicle production jumped 40% to 25,708 units. Deliveries of the Model S and Model X vehicles rose 53% to just over 22,000.

Despite the launch of the cheaper Model 3, Telsa said it has seen an increase in orders for the Model S. The Model 3 has a starting price of US$35,000, compared to about US$55,000 for the Model S.

Sales in the second quarter rose to US$2.79bn from US$1.28bn the same period a year ago.

The net loss widened to US$401mln from US$293mln, reflecting the costs of ramping up the Model 3.

Shares jumped 6.48% to US$347.0 each in after-hour trading in the US.

]]>
Thu, 03 Aug 2017 09:12:00 -0400 http://www.proactiveinvestors.com/companies/news/181913/tesla-ceo-elon-musk-says-demand-for-model-3-is-like-serving-hungry-customers-hamburgers-181913.html
<![CDATA[News - Tesla, Fitbit , Wyndham Worldwide and more - AFTER HOURS ]]> http://www.proactiveinvestors.com/companies/news/181928/tesla-fitbit-wyndham-worldwide-and-more-after-hours-181928.html Electric car maker Tesla (NASDAQ:TSLA) was a big riser after hours after it posted a narrower- than -expected loss for the second quarter, but it  was still wider than last year.

Shares in Elon Musk's company gained 5.56% to US$344 after the bell in New York.

Sales in the second quarter rose to US$2.79bn compared to US$1.28bn the same period a year ago, while the net loss widened to US$401mln from US$293mln, reflecting the costs of ramping up the Model 3.

The group expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.

Elsewhere, Fitbit (NYSE:FIT) added as much as 8% as  the tech group  reported better-than-expected quarterlies. In the June quarter the group posted a loss of 8 cents per share against an expected loss of 15 cents.

Management said it was on track to release a smartwatch before the holiday season.

Fitbit results: Loss of 8 cents per share vs. expected loss of 15 cents - CNBC https://t.co/xvptexq51M #Fitbit #FitbitAlta pic.twitter.com/TmyQyKagCb

— Fitbit Alta News (@FitbitAltaNews) 3 August 2017 US hospitality firm Wyndham Worldwide ( NYSE: WYN ) shares added almost 5% after it revealede it would spin off its hotel business, which would result in two  separate, publicly traded companies.

Wyndham Hotel Group will become a new, publicly traded pure-play hotel company and Wyndham Vacation Ownership will be the world's largest publicly traded timeshare company and will be joined with Wyndham Destination Network, home to RCI.

Also Cheesecake Factory (NASDAQ:CAKE) shares plunged over 6% to $44.20 after hours as it reported a decline in comparable restaurant sales, which overshadowed  earnings and revenue that were roughly in-line with expectations.

Hologic Inc (NASDAQ:HOLX) shares fell 5% after the New York bell as the healthcare diagnostic group reported earnings for its third quarter that decreased compared to the same period last year.

]]>
Thu, 03 Aug 2017 08:10:00 -0400 http://www.proactiveinvestors.com/companies/news/181928/tesla-fitbit-wyndham-worldwide-and-more-after-hours-181928.html
<![CDATA[News - Tesla's Elon Musk talks of "unrelenting stress" on Twitter ]]> http://www.proactiveinvestors.com/companies/news/181786/tesla-s-elon-musk-talks-of-unrelenting-stress-on-twitter-181786.html Tesla Inc (NASDAQ:TSLA) Elon Musk has confessed on Twitter to living a life of “unrelenting stress”.

Although he said he had not been medically diagnosed as “bipolar”, he did indicate in his tweets that he was inclined to “great highs” and “terrible lows”.

The confession came in an exchange on Twitter, in the wake of the release of the Tesla Model 3 last Friday.

Maybe not medically tho. Dunno. Bad feelings correlate to bad events, so maybe real problem is getting carried away in what I sign up for.

— Elon Musk (@eloTesla Inc (NASDAQ:TSLA) Elon Musk has confessed on Twitter to living a life of “unrelenting stress”. Although he said he had not been medically diagnosed as “bipolar”, he did indicate in his tweets that he was inclined to “great highs” and “terrible lows”.nmusk) July 30, 2017

The run-up to the launch has been fraught and Musk indicated in his speech at the launch party that the stress was set to continue, as the company is set to go flat-out to cover the backlog of orders.

“Welcome to production hell,” Musk said last Friday when addressing workers, who are set to get first dibs on the new Model 3s.

Possibly in a reference to that comment, Musk tweeted on Monday: "If you buy a ticket to hell, it isn't fair to blame hell…”

If you buy a ticket to hell, it isn't fair to blame hell ...

— Elon Musk (@elonmusk) July 30, 2017 ]]>
Tue, 01 Aug 2017 07:43:00 -0400 http://www.proactiveinvestors.com/companies/news/181786/tesla-s-elon-musk-talks-of-unrelenting-stress-on-twitter-181786.html
<![CDATA[News - Tesla set to report earnings on Wednesday as reaction to Model 3 launch galvanises Twitter ]]> http://www.proactiveinvestors.com/companies/news/181722/tesla-set-to-report-earnings-on-wednesday-as-reaction-to-model-3-launch-galvanises-twitter-181722.html Having hit its target of producing its Model 3 electric cars before the end of July, Tesla Inc (NASDAQ:TSLA) now has earnings targets to worry about.

The company is scheduled to release second quarter results after the bell on Wednesday, and once again it is expected to reveal a humungous loss.

According to data aggregator Factset, analysts are expecting a loss per share of US$2.40, compared with a loss of US$2.09 in the same period of 2016. Stripping out one-off items, the adjusted loss per share is expected to shrink to US$1.86; this is the number to look out for when the results come out.

The company’s employees got their hands on the first Model 3s to roll off the production line on Friday and the company has said it will initially focus on satisfying demand from employees before the general public gets its chance to buy one.

At a minimum of US$35,000, the Model 3 is considerably cheaper than other Tesla models and therefore is likely to be the first Tesla car that a sizeable proportion of Tesla employees can afford.

In return, Musk appeared to promise them “production hell” as he admitted the company had its work cut out to satisfy demand.

Tesla expects to build around 5,000 Model 3s a week this year and figures to ramp that up to close to 10,000 units a week next year.

Wednesday will be a bit early to get a handle on how well production is going, or sales for that matter, but founder Elon Musk is not once to pass up the opportunity to provide a sound-bite or two (thousand), so there will almost certainly be an upbeat outlook statement from him.

Meanwhile, the fan boys and fan girls are already out there frothing at the mouth with enthusiasm in the style pioneered by Apple fans.

I drove the #Model3, it was FABULOUS, this car is a game changer. Congrats to everyone at @TeslaMotors thank you for electrifying our world! pic.twitter.com/QNobkhUdQo

— Leilani Münter (@LeilaniMunter) July 29, 2017

… but they are not without a sense of humour.

Hey @TeslaMotors is my #Model3 ready? I should get it later today, even before @elonmusk since I reserved it in 1969 according to My Tesla pic.twitter.com/yiOq9LY6tl

— Saul Lopez (@slcuervo) July 28, 2017

The car review web sites have also been weighing in …

The Tesla #Model3 interior doesn't look like any car you've ever seen https://t.co/9lMoTywqrE pic.twitter.com/wQLjiE9rHT

— The Verge (@verge) July 29, 2017

.@TeslaMotors delivers on a mass market, affordable EV. And believe the hype, the #Model3 is massively impressive. https://t.co/L9C5bnFhh9 pic.twitter.com/Db3to4Wc3F

— Roadshow (@roadshow) July 29, 2017

There’s even a Model3 Owners Club, which until last Friday must have been an even more exclusive club than the Swiss Admiral’s Club.

 

The massive stage for the Model 3 launch event #partyofthedecade #tesla #model3 #launch pic.twitter.com/LWCVFKjeAi

— Model 3 Owners Club (@Model3Owners) July 28, 2017

Of course, some people are never satisfied, but this tweet might well have made Henry Ford smile.

 

Tesla Model 3 Will Cost $1000 Extra for Color Other Than Black: The spanking new Model 3 from Tesla will be coming… https://t.co/go6SieJwQ6

— Rumor About (@rumorabout) July 31, 2017 ]]>
Mon, 31 Jul 2017 09:49:00 -0400 http://www.proactiveinvestors.com/companies/news/181722/tesla-set-to-report-earnings-on-wednesday-as-reaction-to-model-3-launch-galvanises-twitter-181722.html
<![CDATA[News - Tesla's Model 3 rolls off the production line as Musk admits company faces production challenge ]]> http://www.proactiveinvestors.com/companies/news/181661/tesla-s-model-3-rolls-off-the-production-line-as-musk-admits-company-faces-production-challenge-181661.html Elon Musk, boss of Tesla Inc (NASDAQ:TSLA), has admitted the company faces “at least six months of manufacturing hell” to meet demand for its Model 3.

Musk handed over the first Model 3 off the production line to a Tesla employee buyer on Friday outside Tesla's factory in Fremont, California.

Priced at US$35,000 for the most basic model, the company has more than half a million orders for the car, which has a range of 220 miles on a single charge (dearer versions will have a longer range of up to 310 miles).

Musk told journalists the company faced “quite a challenge” to meet demand. Musk says Tesla expects to build around 5,000 Model 3s a week this year.

The company has pledged to produce 500,000 of the vehicles next year, which would be almost six times the number it produced last year.

That...is a lot of Model 3s. #TeslaModel3 pic.twitter.com/1HzxaEwiF0

— Austin Evans (@austinnotduncan) July 29, 2017

It would catapult the company from a niche producer of expensive luxury cars into a mass-market producer.

Having said that, Tesla customers can buy an expensive version of the Model 3 if they wish. Additional features could push the price up to US$60,000, and that's before taxes and other fees. Those additional features include self-driving hardware and enhanced autopilot software.

“Every Tesla sold right now has the hardware for full autonomy,” Musk said.

Further down the road, if you'll forgive the pun, there is the possibility for owners to upgrade the car's kit to include self-driving hardware and 

]]>
Fri, 28 Jul 2017 18:59:00 -0400 http://www.proactiveinvestors.com/companies/news/181661/tesla-s-model-3-rolls-off-the-production-line-as-musk-admits-company-faces-production-challenge-181661.html
<![CDATA[News - Heavyweight Citi targets $357 for Tesla shares as it starts coverage ]]> http://www.proactiveinvestors.com/companies/news/181299/heavyweight-citi-targets-357-for-tesla-shares-as-it-starts-coverage-181299.html Heavyweight US broker Citi started coverage on electric car giant Tesla (NASDAQ:TSLA)  with a 'neutral' stance and $357 target - a fair distance from the current price of around $329.

Much in the news recently, the Elon Musk founded firm is now delivering the first of its mass market Model 3 cars. These cost as little as $35,000.

Musk reckons production will ramp up quickly with 100 vehicles produced in August, a further 1,500 or more in September, and 20,000 per month by December.

Citi analyst Italy Michaeli explained that the rationale behind the broker's 'neutral' stance was that it was awaiting  a stronger balance sheet and therefore a more advantageous entry point.

He reckons Tesla's cash balance will decline to $1.1bn at the end of 2017 from $4bn due to Model 3 production costs and operating losses.

He also reckons the California based firm will not generate positive free cash flow until 2019.

]]>
Fri, 21 Jul 2017 13:34:00 -0400 http://www.proactiveinvestors.com/companies/news/181299/heavyweight-citi-targets-357-for-tesla-shares-as-it-starts-coverage-181299.html
<![CDATA[News - Tesla appoints 21st Century Fox chief James Murdoch as independent director to board ]]> http://www.proactiveinvestors.com/companies/news/181064/tesla-appoints-21st-century-fox-chief-james-murdoch-as-independent-director-to-board-181064.html Tesla Inc. (NASDAQ:TSLA) has taken on 21st Century Fox Inc. (NASDAQ:FOX) chief executive, James Murdoch, and Johnson Publishing Co. boss, Linda Johnson Rice, as independent directors.

The electric car maker said Murdoch and Johnson Rice bring a wealth of leadership experience to its board.  

Murdoch has been a "key driver" of domestic and international expansion at Fox, Telsa said, adding that he has been “instrumental in the company’s robust social impact initiatives, including its decade-long leadership on environmental sustainability”.

Telsa said Johnson Rice has extensive corporate board experience, having previously served on the boards of Bausch & Lomb , Continental Bank, Quaker Oats, Dial Corporation, MoneyGram and Kimberly-Clark Corporation. She currently is currently on the boards of Omnicom Group (NYSE:OMC) and GrubHub (NYSE:GRUB).

Tesla welcomes Linda Johnson Rice and James Murdoch as new independent directors to its board https://t.co/PPMbMflILh

— Tesla (@TeslaMotors) 17 July 2017

Their appointments come after some shareholders last year criticised Tesla for its practice of staggering its election of board members throughout the year. The shareholder urged Tesla to instead appoint new board members early in the year.

However, at the company’s annual meeting in June, shareholders voted to keep the board terms staggered.

Shares in Tesla dipped 0.245 to US$318.80 in US pre-market trading.

Earlier this month, Tesla began rolling out the production of its first mass-market electric vehicle, the Model 3.

The first 30 customers will receive the Model 3 on 28 July before the car becomes available to the public at a base price of US$25,000, making it more affordable than the company’s other ranges that typically sell for at least US$90,000.

]]>
Tue, 18 Jul 2017 12:49:00 -0400 http://www.proactiveinvestors.com/companies/news/181064/tesla-appoints-21st-century-fox-chief-james-murdoch-as-independent-director-to-board-181064.html
<![CDATA[News - Tesla founder Elon Musk shares first images of Model 3 after rolling off production line ]]> http://www.proactiveinvestors.com/companies/news/180585/tesla-founder-elon-musk-shares-first-images-of-model-3-after-rolling-off-production-line-180585.html Tesla Inc.’s (NASDAQ:TSLA) founder Elon Musk has shared the first images of the company’s Model 3 electric car on Twitter.

Musk tweeted photos of the four-door Model 3 outside the Tesla factory site in California on Saturday after it came off the assembly line.

 

pic.twitter.com/is6Hthjjoj

— Elon Musk (@elonmusk) 9 July 2017

 

Production unit 1 of Model 3 is now built and going through final checkout. Pics soon.

— Elon Musk (@elonmusk) 9 July 2017

 

First Production Model 3 pic.twitter.com/TCa2NSUNI3

— Elon Musk (@elonmusk) 9 July 2017

The first 30 customers will receive the Model 3 on 28 July before the car becomes available to the public at a base price of US$25,000, making it more affordable than the company’s other ranges that typically sell for at least US$90,000.

Musk last week revealed that he expected production to ramp up quickly with 100 vehicles in August, a further 1,500 or more in September, and 20,000 per month by December.

It marks Tesla’s first step as a producer of mass-market electric cars as the group has previously focused on the output of luxury vehicles in relatively small numbers. 

Tesla’s share price more than doubled between December and late June on optimism for Musk’s strategy to target the masses with a more inexpensive electric car.

Production delays and initial quality issues for Tesla’s previous Model S sedan and Model X SUV had sparked doubts from some analysts about the new model.

However, Musk gave the market a pleasant surprise on 2 July when he revealed that the Model 3 received regulatory approvals for production two weeks ahead of schedule.

A day later, Tesla disappointed investors last week with its second quarter delivery numbers, saying production was hit by a shortfall of batteries. Telsa delivered just over 22,000 vehicles in the three months, of which just over 12,000 were Model S and just over 10,000 were Model X. 

Tesla shares bucked a recent trend to rise 0.9% on the day.

]]>
Mon, 10 Jul 2017 07:53:00 -0400 http://www.proactiveinvestors.com/companies/news/180585/tesla-founder-elon-musk-shares-first-images-of-model-3-after-rolling-off-production-line-180585.html
<![CDATA[News - Elon Musk confirms Tesla will build world’s largest lithium ion battery in South Australia ]]> http://www.proactiveinvestors.com/companies/news/180526/elon-musk-confirms-tesla-will-build-worlds-largest-lithium-ion-battery-in-south-australia-180526.html Elon Musk, the billionaire founder of electric car maker Tesla Inc (NASDAQ:TSLA), has confirmed he will build and install the world’s largest lithium ion battery in South Australia.

The 100-megawatt (129 megawatt hour) battery is being designed in partnership with French energy firm Neonen.

WATCH: Australia to become a 'very important lithium & cobalt producer', says SP Angel's John Meyer

Jay Weatherill, the Premier of South Australia, said the battery will improve the security of energy supplies in the region which blacked out last year following a devastating storm.

World’s largest lithium ion battery will be installed in #SouthAustralia under a historic agreement between #Neoen #Tesla & SA Gov! pic.twitter.com/GcfrwOzD9g

— Jay Weatherill (@JayWeatherill) July 7, 2017

Earlier this year, Musk said he would have the battery built within 100 days or do it for free, a promise he isn’t backing down from although he admittted the project isn't without its challenges.

“There is certainly some risk, because this will be largest battery installation in the world by a significant margin,” Musk said in Adelaide earlier today.

WATCH: Tesla deal 'hugely encouraging for Cobalt miners', says Mining Capital's Alastair Ford

According to the billionaire, the next biggest lithium ion battery in the world is just 30 megawatts.

This will be the highest power battery system in the world by a factor of 3. Australia rocks!! https://t.co/c1DD7xtC90

— Elon Musk (@elonmusk) July 7, 2017

Musk expects the installation to help stabilise the grid as well as lowering prices for consumers in the area.

“You can essentially charge up the battery packs when you have excess power when the cost of production is very low ... and then discharge it when the cost of power production is high, and this effectively lowers the average cost to the end customer,” the 46-year-old said.

“It’s a fundamental efficiency improvement for the grid.”

Tesla shares crash again on Thursday

News of the battery comes at a turbulent time for Tesla. The automaker’s share price has been rocked over the past couple of weeks and has plunged by more than 20% since it posted a record close of US$383.45 on June 23.

The sell-off has been sparked by concerns over weak sales, increased competition and questions over the safety of its cars.

Big name banks such as Goldman Sachs and Bernstein have voiced their disappointment over Tesla’s second quarter deliveries this year. Wall Street had expected deliveries of around 24,000, while the company could only muster 22,000.

On top of that, competition is starting to intensify which means that Tesla – the biggest player in the electric car market – will likely give up market share in the coming years.

Volvo came out this week and said that by 2019 all of its cars will be either hybrid or electric, while there are rumours that BMW is planning to roll out an electric version of its popular 3-Series sedan later this year.

French president Emmanuel Macron said yesterday that France will ban sales of petrol and diesel vehicles by 2040, which will force the likes of Renault, Peugeot and Citroen to expedite their electric plans.

Model S not as safe as Tesla thinks?

To compound a bad couple of weeks, the Tesla Model S – previously dubbed the safest car in history – failed to receive a top safety award on Thursday.

The Insurance Institute for Highway Safety said the luxury sedan didn’t qualify for any award because it was only given an “acceptable” rating in the small overlap front collision test, which is when the front driver’s side corner is slammed into a barrier at 40mph.

“The main problem with the performance of the Model S was that the safety belt let the dummy’s torso move too far forward, allowing the dummy’s head to strike the steering hard through the airbag,” the report concluded.

The car maker responded by saying that the car scored the top grade in all other areas of the test.

Tesla shares slumped 5.6% on Thursday to US$308.83, although they were looking a little perkier in pre-market trading, adding 2%.

 -- Adds video links --

]]>
Fri, 07 Jul 2017 09:54:00 -0400 http://www.proactiveinvestors.com/companies/news/180526/elon-musk-confirms-tesla-will-build-worlds-largest-lithium-ion-battery-in-south-australia-180526.html
<![CDATA[News - Tesla shares crash again as Model S misses out on top safety award ]]> http://www.proactiveinvestors.com/companies/news/180473/tesla-shares-crash-again-as-model-s-misses-out-on-top-safety-award-180473.html Tesla Inc (NASDAQ:TSLA) shares crashed again on Thursday after the car maker’s flagship Model S failed to receive a top safety award from the Insurance Institute for Highway Safety (IIHS).

The news is a blow for Tesla which has often trumpeted the luxury sedan as the ‘safest car in history’.

The IIHS said the Model S didn’t qualify for any award because it was only given an “acceptable” rating in the small overlap front collision test, which is when the front driver’s side corner is slammed into a barrier at 40mph.

“The main problem with the performance of the Model S was that the safety belt let the dummy’s torso move too far forward, allowing the dummy’s head to strike the steering hard through the airbag,” the report concluded.

Although Tesla made changes and re-tested the car, the IIHS said the same problem occurred again.

The cars that did receive the ‘Top Safety Pick+’ award were Ford Motor Company’s (NYSE:F) Lincoln Continental, the Mercedes Benz E-Class and the Toyota Avalon.

Shares are breaking down

Tesla shares have been under pressure in recent weeks, predominantly due to mounting concerns around its sales, competition and, as we’ve seen today, the safety of its cars.

The stock has plunged by more than 15% since it posted a record close of US$383.45 on June 23.

Big name banks such as Goldman Sachs and Bernstein have voiced their disappointment over Tesla’s second quarter deliveries. Wall Street had expected deliveries of around 24,000, while the company, run by billionaire Elon Musk, could only muster 22,000.

France to ban sales of petrol and diesel cars by 2040

On top of that, competition is starting to intensify.

Volvo came out this week and said that by 2019 all of its cars will be either hybrid or electric, while there are rumours that BMW is planning to roll out an electric version of its popular 3-Series sedan later this year.

That competition is unlikely to go away anytime soon either. French automakers Peugeot, Citroen, Vauxhall and Renault will all be accelerating their electric plans after having been given a little a nudge by Emmanuel Macron and his government.

Newly-elected Macron has announced that France will end sales of petrol and diesel vehicles by 2040 as part of an ambitious plan to meet its targets under the Paris climate accord.

While that move might increase competition, Tesla can take some heart from the fact that it looks like the beginning of the end for the internal combustion engine’s dominance of the car industry.

Tesla shares dropped 4.7% lower this morning to US$311.

--Updates for share price and France diesel/ petrol ban--

]]>
Thu, 06 Jul 2017 09:41:00 -0400 http://www.proactiveinvestors.com/companies/news/180473/tesla-shares-crash-again-as-model-s-misses-out-on-top-safety-award-180473.html
<![CDATA[News - Tesla shares lower as battery shortfall hits second quarter deliveries but Baird upbeat ]]> http://www.proactiveinvestors.com/companies/news/180250/tesla-shares-lower-as-battery-shortfall-hits-second-quarter-deliveries-but-baird-upbeat-180250.html Electric car firm Tesla (NASDAQ:TSLA) saw shares down on Wednesday as it blamed a shortfall of batteries on its second quarter delivery numbers, which disappointed the market

The group said it delivered just over 22,000 vehicles in the three months, of which just over 12,000 were Model S and just over 10,000 were Model X.

This is a 53% increase compared to the second quarter of 2016. Total vehicle deliveries in the first half of 2017 were approximately 47,100

The statement said however  "The major factor affecting Tesla’s Q2 deliveries was a severe production shortfall of 100 kWh battery packs, which are made using new technologies on new production lines.

"The technology challenge grows exponentially with energy density. Until early June, production averaged about 40% below demand. Once this was resolved, June orders and deliveries were strong, ranking as one of the best in Tesla history."

Provided global economic conditions do not worsen considerably, Tesla said it was confident that combined deliveries of Model S and Model X in the second half of 2017 would exceed deliveries in the first half of 2017.

Tesla shares in the doldrums..

Tesla shares finished down 2.5% at $352.62 following the shortened trading session on Monday and are today slumped almost 7% to $328.16.

But on Monday this week, the firm revealed it will begin rolling out its first mass-market electric car, the Model 3, on Friday.   Musk revealed on Twitter that production is starting two weeks ahead of schedule after receiving regulatory approval. The first 30 customers will receive the Model 3 at a handover party, he said.    He also said he expected production to ramp up quickly with 100 vehicles in August, a further 1,500 or more in September, and 20,000 per month by December   The Model 3 will be priced at about US$35,000, making it much more affordable than the company’s other ranges that typically sell for at least US$90,000.   It marks Tesla’s first step as a producer of mass-market electric cars as the group has previously focused on the output of luxury vehicles in relatively small numbers.  In 2016, Tesla produced about 85,000 vehicles. But Baird is upbeat....   Meanwhile, Baird analyst Ben Kallo reckons weakness in Tesla shares seen today will be shortlived as investors start looking ahead to the Model 3 launch, set to be introduced on July 28.

Kallo reiterated his outperform rating and stock price target of $368 - 4.4% above Monday's closing price of $352.62.

"The release of Q2 deliveries was another de-risking event for the stock, and we expect shares to trade higher as investors are increasingly able to focus on the Model 3,"  the analyst said.

 

]]>
Mon, 03 Jul 2017 16:42:00 -0400 http://www.proactiveinvestors.com/companies/news/180250/tesla-shares-lower-as-battery-shortfall-hits-second-quarter-deliveries-but-baird-upbeat-180250.html
<![CDATA[News - Tesla Motors expects first production of Model 3 electric car this week ]]> http://www.proactiveinvestors.com/companies/news/180216/tesla-motors-expects-first-production-of-model-3-electric-car-this-week-180216.html Tesla Inc (NASDAQ:TSLA) will begin rolling out its first mass-market electric car, the Model 3, on Friday, chief executive Elon Musk has announced.

Musk revealed on Twitter that production is starting two weeks ahead of schedule after receiving regulatory approval. The first 30 customers will receive the Model 3 at a handover party, he said. 

He also said he expected production to ramp up quickly with 100 vehicles in August, a further 1,500 or more in September, and 20,000 per month by December.

 

Looks like we can reach 20,000 Model 3 cars per month in Dec

— Elon Musk (@elonmusk) 3 July 2017

 

Model 3 passed all regulatory requirements for production two weeks ahead of schedule. Expecting to complete SN1 on Friday

— Elon Musk (@elonmusk) 3 July 2017

 

The Model 3 will be priced at about US$35,000, making it much more affordable than the company’s other ranges that typically sell for at least US$90,000.

It marks Tesla’s first step as a producer of mass-market electric cars as the group has previously focused on the output of luxury vehicles in relatively small numbers.  In 2016, Tesla produced about 85,000 vehicles.

Musk expects the Model 3 to boost Tesla’s production to 500,000 cars a year in 2018. The company already has about 400,000 pre-orders for the Model 3.

Tesla first unveiled its Model 3 more than a year ago at an event at its headquarters in Hawthorne, California.  The group has built a US$5bn factory in Nevada to produce the batteries for electric cars and earlier this year raised US$1bn through offerings of stock and debt.

Chinese internet firm, Tencent Holdings, bought a 5% stake in Tesla as part of the fundraising.

The fundraising was launched as the group continues to post quarterly losses. Telsa reported a US$397mln loss in the first quarter compared to a loss of US$282mln in the same period a year ago. Revenue, however, doubled to US$2.7bn.

Shares in Tesla have also risen about 67% this year on investor confidence about the Model 3. The group’s market capitalisation stands at about US$59bn, compared to US$52bn at General Motors Company (NYSE:GM) and US$44bn at Ford Motor Company (NYSE:F). 

]]>
Mon, 03 Jul 2017 10:24:00 -0400 http://www.proactiveinvestors.com/companies/news/180216/tesla-motors-expects-first-production-of-model-3-electric-car-this-week-180216.html
<![CDATA[News - Tesla, International Speedway Corp and US stock futures surge - PRE-MARKET ]]> http://www.proactiveinvestors.com/companies/news/180224/tesla-international-speedway-corp-and-us-stock-futures-surge-pre-market-180224.html Ubiquitous electric car giant Tesla (NASDAQ:TSLA) was back in focus as the truncated July 4th week began with the shares accelerating over 2% in pre-market on the back of more excitement surrounding the first mass market vehicle, which will be rolled out on Friday.

Entrepreneur Elon Musk, the founder of the California based tech giant, said on Twitter, of course , that production would begin ahead of schedule after receiving regulatory approval.

Shares added 2.25% to $369.75.

#tesla model 3 waiting for news from @elonmusk be like... pic.twitter.com/3tGphdCddT

— Teslanomics (@teslanomicsco) 2 July 2017

In terms of the markets, futures point to  a higher start. The Dow Jones is racing ahead 75 up, the S&P 500 is seven points ahead , while the Nasdaq is down four. Investors are eyeing a clutch of data, including manufacturing and car sales on Monday.

Another stock in the lights today is Chart Industries Inc (NASDAQ: GTLS), which may well see shares rise again after the stock, rose over 3% on Friday after it agreed to acquire Hudson Products Corporation for $410mln in cash.

Chart Industries shares closed at $34.73 on Friday and are up 0.35% in pre-market.

Elsewhere, in earnings, Wall Street expects International Speedway Corp  (NASDAQ: ISCA) to report quarterly earnings at $0.32 per share on revenue of $166.79mln ahead of the opening bell. Shares on Friday added over 1.2% .

Big macro news today is that Iran has inked a massive $4.8bn deal with a consortium led by huge French global oiler Total to develop its giant South Pars gas field, the largest natural gas field in the world.

The deal is the Islamic republic's first with a European oil company in more than a decade, marking a major milestone for the country.

]]>
Mon, 03 Jul 2017 08:15:00 -0400 http://www.proactiveinvestors.com/companies/news/180224/tesla-international-speedway-corp-and-us-stock-futures-surge-pre-market-180224.html
<![CDATA[News - Tesla is very expensive but is it time to short stock in the electric car maker? ]]> http://www.proactiveinvestors.com/companies/news/179698/tesla-is-very-expensive-but-is-it-time-to-short-stock-in-the-electric-car-maker-179698.html Is it time to short Tesla (NASDAQ:TSLA)? It’s a question a lot of investors have asked in the past year as the market capitalization of the electric car maker has grown to US$63bn.

That means it is more valuable than General Motors (NYSE:GM) and Ford Motor Company (NYSE:F) by some margin.

And to the lay investor this seems well out of whack with fundamentals, particularly as Tesla is loss-making.

So, it’s ideal opportunity for those ballsy enough to bet on the stock eventually hitting reverse gear because it is too expensive.

Think again

JAMM Investing’s blog on the Seeking Alpha site tackles the Tesla short trade head on.

JAMM admits the issues such as the company’s “aggressive accounting, quality defects (especially for the Model X), TSLA's cash burn, and Musk's aggressive and inaccurate statements”, support the naysayers’ case.  Cash burn is also a risk.

Tesla Model 3 here, there and everywhere! Don't miss our Model 3 sightings gallery, updated daily - https://t.co/oDZ4IGydfP pic.twitter.com/VtcX1NISLU

— TESLARATI (@Teslarati) June 19, 2017

However the only thing likely to sink Tesla is if sales growth fails to live up to some “supercharged” expectations. With the huge backlog for the Model 3, demand remains high, says JAMM.

“I believe that TSLA is overvalued but that the chickens may take as long as a year or two to come home to roost,” it adds.

“The short-term outlook is positive because of the Model 3 backlog and relative lack of competition.”   

Mid-morning Tesla shares were changing hands for US$382.15, up 1.5%. 

READ: JAMM's full article here  ]]>
Thu, 22 Jun 2017 10:18:00 -0400 http://www.proactiveinvestors.com/companies/news/179698/tesla-is-very-expensive-but-is-it-time-to-short-stock-in-the-electric-car-maker-179698.html
<![CDATA[News - Tesla surges on reports its close to building factory in China ]]> http://www.proactiveinvestors.com/companies/news/179549/tesla-surges-on-reports-its-close-to-building-factory-in-china-179549.html Shares in Tesla Inc (NASDAQ:TSLA) surged in pre-market trading after reports surfaced that the electric car maker was close to agreeing a deal to produce cars in China.

Under the deal, which is still being finalised but could be announced later this week, Tesla would be allowed to build facilities in Shanghai’s Lingang development zone, according to a Bloomberg report.

Should the agreement turn out to be true, it would give the California-based firm better access to the world’s largest auto market where the fight to develop electric, self-driving cars is at its most intense.

Tesla’s potential move into China comes as Hong Kong-traded Tencent – famous for its WeChat messaging app – disclosed that it has taken a 5% stake in Tesla for US$1.78bn.

Tesla ‘not guilty’ in fatal crash case

Elsewhere, Tesla was not at fault for a crash that killed a man driving one of its cars last year, according to a US government report.

The National Transportation Safety Board (NTSB) found that the Tesla driver – Joshua Brown – was given repeated warnings about keeping his hands on the wheel.

His Model S car collided with a lorry in Florida whilst on autopilot mode back in May.

The NTSB found that in 37 minutes of driving, Brown kept his hands on the wheel for just 25 seconds, while he had also set the cruise control to 74 miles per hour – above the 65mph limit.

Tesla has so far declined to comment on the report but did say last year that the autopilot system “does not allow the driver to abdicate responsibility”.

Shares gained almost 2% in pre-market trading to US$376.80.

]]>
Tue, 20 Jun 2017 08:58:00 -0400 http://www.proactiveinvestors.com/companies/news/179549/tesla-surges-on-reports-its-close-to-building-factory-in-china-179549.html
<![CDATA[News - German broker Berenberg goes electric, upgrading Tesla to 'buy' and more than doubling its target price ]]> http://www.proactiveinvestors.com/companies/news/179164/german-broker-berenberg-goes-electric-upgrading-tesla-to-buy-and-more-than-doubling-its-target-price-179164.html German broker Berenberg went electric today, plugging into US electric cars maker Tesla Inc (NASDAQ:TSLA) by upgrading its rating for the stock and more than doubling its share price target.

Berenberg raised its recommendation for the Nasdaq-listed stock to ‘buy’ from ‘hold’ and hiked its target price to US$464 from US$193.

READ - Tesla Model 3 hypes leaves Morgan Stanley analyst unmoved READ - Tesla's losses widen as it prepares to start producing Model 3

In early New York trading, Tesla shares were 3.2% higher at US$370.60.

In a note to clients, the broker’s analysts said, in their view: “The threat from traditional OEMs (original equipment manufacturers) is overestimated and less realistic than perceived.“

They added: “Beyond ‘skeleton’ strategies and unsubstantial announcements, underlying progress towards dedicated, mass-market electric vehicles (EVs) by traditional OEMs will remain uncompetitive as long as they remain bound to the same low-risk, low-cost approach that has been in place for the past 20 years.”

The analysts said: “Tesla’s competitive advantage in the product itself, the manufacturing process and footprint will likely allow it to gain unencumbered market share for a longer period than expected, helping to elevate long-term profitability beyond the premium OEMs.”

They concluded: “Tesla’s disruptive potential encompasses the vehicle, the entire production process and the product-to-market strategy.

“Once the business reaches scale, the cash generation potential is significantly superior to existing premium OEMs, with cash flow per vehicle more than 50% higher.“

Tesla shares added an impressive 3.79% to $372.62 in New York on Tuesday.

$TSLA Berenberg rates Buy with pt 464. Zooom #model3 #tesla pic.twitter.com/qP7LmzH9Qr

— Navi Avatar (@NaviAvatar1) June 13, 2017   ]]>
Tue, 13 Jun 2017 10:40:00 -0400 http://www.proactiveinvestors.com/companies/news/179164/german-broker-berenberg-goes-electric-upgrading-tesla-to-buy-and-more-than-doubling-its-target-price-179164.html
<![CDATA[News - Tesla Model 3 hypes leaves Morgan Stanley analyst unmoved ]]> http://www.proactiveinvestors.com/companies/news/177803/tesla-model-3-hypes-leaves-morgan-stanley-analyst-unmoved-177803.html The stock of electric car maker Tesla Inc (NASDAQ:TSLA) moved into reverse in pre-market trading after a downbeat research note from Morgan Stanley.

In the wake of Tesla’s first quarter results, Morgan Stanley analyst Adam Jonas downgraded to an “equal weight” position, saying that he now expects Tesla to remain in the red on a generally accepted accounting principles (GAAP) basis until late 2019.

His estimate of annual cash burn deepens to US$3.1bn from US$2.3bn the year before.

“By itself, these changes to our model would have taken our price target to US$292. Rolling forward the starting point of our DCF [discounted cash flow] of the core business to May 1st (from Jan 1st) was an equal offset. Our price target thus remains unchanged at $305, or roughly 6% downside from the current stock price,” the Morgan Stanley number cruncher explained.

erring on the side of caution...

Jonas’s spreadsheet errs on the side of caution when it comes to forecast sales of Tesla’s eagerly awaited Model 3, which will be the first Tesla car to be targeted at the mass market.

Tesla’s boss and founder, Elon Musk, insists the company is on track to start producing the Model 3 by July of this year, and should deliver tens of thousands of units to buyers and car dealers’ forecourts by the end of this year, and hundreds of thousand next year.

Jonas is a glass half-empty guy, forecasting just 2,000 Model 3 deliveries this year and 90,000 next year, though he admits his forecasts are “far below” Wall Street’s expectations.

“Earlier this year investor expectations for Model 3 hit a trough with most investors we spoke with at that time expecting zero deliveries of the model during 2017 A series of subsequent reiterations from management and the spotting of release candidates testing on public roads have increased expectations of timing and volume significantly,” Jonas noted.

Tesla shares fell 2.56% in New York to $316.48.

--Updates for share price rise--- ]]>
Mon, 15 May 2017 09:15:00 -0400 http://www.proactiveinvestors.com/companies/news/177803/tesla-model-3-hypes-leaves-morgan-stanley-analyst-unmoved-177803.html
<![CDATA[News - Tesla boss says orders for its solar roof product will open today ]]> http://www.proactiveinvestors.com/companies/news/177663/tesla-boss-says-orders-for-its-solar-roof-product-will-open-today-177663.html The chief executive of Tesla Inc. (NASDAQ:TSLA) has said orders for its solar roof product will open today, with prices to be comparable with the price of a regular roof once energy savings are factored in.

Tesla solar glass roof orders open this afternoon. I think it will be great. More in about 10 hours ...

— Elon Musk (@elonmusk) 10 May 2017

In posts on Twitter, Elon Musk said the tiles can be ordered from any country from this afternoon, with “deployment” to be this year for the US, and next year for overseas - including the UK.

Solar roof can be ordered for almost any country. Deployment this year in the US and overseas next year.

— Elon Musk (@elonmusk) 10 May 2017

Musk also said that smooth and textured glass tiles will be offered first, with tiles that mimic slate and clay - called Tuscan - coming in about six months.

Meanwhile, a blog post on Tesla’s website also confirmed the US and overseas timelines for the solar panel installations and the roof styles.

It said that a US$1,000 refundable deposit is required to place an order, and the group will offer financing options for US solar roof installation by the end of the year.

Tesla estimated that a typical homeowner would expect to pay US$21.85 a square foot for the solar roof, “and benefit from a beautiful new roof that also increases the value of their home.”

The move is part of Tesla’s long-term goal of offering solar panels to its customers.

In November, the electric car group completed its US$2.6bn acquisition of solar-power provider SolarCity Corp., which was founded by Musk’s cousins, Lyndon and Peter Rive.  

]]>
Thu, 11 May 2017 09:22:00 -0400 http://www.proactiveinvestors.com/companies/news/177663/tesla-boss-says-orders-for-its-solar-roof-product-will-open-today-177663.html
<![CDATA[News - Tesla's losses widen as it prepares to start producing Model 3 ]]> http://www.proactiveinvestors.com/companies/news/177310/tesla-s-losses-widen-as-it-prepares-to-start-producing-model-3-177310.html Electric car maker Tesla Inc (NASDAQ:TSLA) saw losses widen in the first quarter despite strong growth in revenue.

The first quarter loss ballooned to US$397mln from US$282mln a year earlier.

Production in the first three months of the year shot up by around two-thirds from a year earlier to 25,000 vehicles, leading to a new quarterly record for car deliveries of 25,051.

Revenue more than doubled to US$2.70bn from US$1.15bn in the corresponding period of 2016, and was around US$100mln higher than the market had been expecting.

Tesla First Quarter Revenue:

2017 $2.7 billion
2016 $1.6 billion
2015 $1.1 billion
2014 $713 million
2013 $562 million
2012 $30 million

— Jon Erlichman (@JonErlichman) May 3, 2017

The loss before tax was deeper at US$371.9mln compared to US$278.4mln the previous year.

The post-tax loss was US$330.3mln, versus US$282.3mln the year before, equating to a net loss per share of US$2.04, which represents an improvement on the previous year’s US$2.13.

The adjusted loss per share of US$1.33 was 52 cents worse than the market had been expecting.

Profit per vehicle sold in 1st quarter:
GM: $1,418
Ford: $1,174
Tesla: -$15,855

— Nick Bunkley (@nickbunkley) May 3, 2017

The company said development of the Model 3 is nearly complete, and production of the vehicle is set to start imminently, with the company targeting output of 5,000 units a month at some point this year and twice that amount next year.

The model 3 will mark the company’s attempt to move into the mid-market.

The group said it was sitting on around US$4bn of cash when it headed into the second quarter.

The shares fell 2.6% to US$310.77 yesterday and fell a further US$4.47 in screen-based trading after the bell to US$306.30.

]]>
Thu, 04 May 2017 06:27:00 -0400 http://www.proactiveinvestors.com/companies/news/177310/tesla-s-losses-widen-as-it-prepares-to-start-producing-model-3-177310.html
<![CDATA[News - Brake issue brings Tesla’s recent rise to a halt ]]> http://www.proactiveinvestors.com/companies/news/176732/brake-issue-brings-teslas-recent-rise-to-a-halt-176732.html Tesla Inc (NASDAQ:TSLA) has recalled more than 50,000 of its Model S and Model X cars after a fault was found with one of the braking systems used in both vehicles.

The recall affects a total of 53,000 vehicles sold around the world which were assembled between February and October last year are affected.

That’s almost two-thirds of Tesla’s total production in 2016.

The US electric car giant apologised to owners and explained that the fault can cause the parking brake to lock and stop vehicles from moving.

Tesla wants to inspect all of the cars, but estimates that less than 5% of those recalled may have issues.

Vehicle recalls usually lead to concerns over safety, but the California-based group played down any suggestions that the issue could lead to an accident of any kind.

“There have been no reports of the parking brake system failing to hold a parked vehicle or failing to stop a vehicle in an emergency as a result of this condition, and this part has no impact on the car’s regular braking systems.

“We do not believe this issue could ever lead to a safety concern for our customers, and we have not seen a single accident or injury relating to it.”

Share price surge

Tesla’s latest car, the Model 3, is due to start rolling off the production lines in July and has been billed as one of the most highly anticipated car launches for years.

The Model 3, which the firm says is its most affordable car, has helped to fuel a recent surge in the electric vehicle maker’s stock price, with Tesla now rivalling the likes of General Motors and Ford in terms of valuation.

That run came to an end on Thursday though once word of the recall got out.

Shares slipped almost 2% yesterday afternoon and edged slightly lower in pre-market trading on Friday to US$302.

]]>
Fri, 21 Apr 2017 09:03:00 -0400 http://www.proactiveinvestors.com/companies/news/176732/brake-issue-brings-teslas-recent-rise-to-a-halt-176732.html
<![CDATA[News - Second hand Teslas sell quicker, and for more money, than other used cars ]]> http://www.proactiveinvestors.com/companies/news/176459/second-hand-teslas-sell-quicker-and-for-more-money-than-other-used-cars-176459.html Second hand Tesla Inc (NASDAQ:TSLA) cars sell faster, and for more money, than those of its luxury car competitors, a recent study has found.

The report by car-shopping platform Autolist.com compared the Tesla Model S to a host of other luxury sedans, including the Audi A7, Porsche Panamera, BMW 6 Series and Mercedes CLS.

It found that, on average, a used Model S will take 87 days to sell, about 5% quicker than the other models.

Autolist also found that the listing prices of the Model Ss were between 3% and 5% above their peer group average for the past year, when adjusted for price differences between the cars.

That beats Ford and Chevvy, too

Those numbers even beat top-selling General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) models.

The highest-selling vehicle in the US, the Ford F-150 pickup truck, and other such as the Chevrolet Malibu, have seen prices hover 1% above and below their over the past year, Autolist said.

The F-F150 and Malibu also spent longer on garage forecourts, taking on average 104 days and 103 days respectively to sell.

Musk: ‘Go invest in Ford’

Speaking of Ford, Tesla overtook the car giant in terms of market value for the first time the other day. Tesla is now valued at the best part of US$47bn – and it had been as high as US$50bn – compared to Ford’s US$45bn.

That was despite Ford selling 6.6mln cars last year compared to just 76,000 sold by Tesla.

Tesla owner Elon Musk also took to social media the other day to tell a group of powerful investors they should invest in Ford if they’re not happy with how things are run at Tesla.

@Reuters Besides, I already said we'd add more independent members during SCTY merger. Will announce soon, but this group has nothing to do with it.

— Elon Musk (@elonmusk) April 12, 2017

The comments came about after five major shareholders – including the California State Teacher’s Retirement System – wrote to billionaire Musk at the start of the week to raise concerns about Tesla’s board.

The letter highlighted alleged personal or professional links between the directors and the entrepreneur.

Shares in Tesla edged 0.6% higher on Thursday morning to US$298.64.

]]>
Thu, 13 Apr 2017 09:56:00 -0400 http://www.proactiveinvestors.com/companies/news/176459/second-hand-teslas-sell-quicker-and-for-more-money-than-other-used-cars-176459.html
<![CDATA[News - Tesla cruises past General Motors to become most valuable US car maker ]]> http://www.proactiveinvestors.com/companies/news/176250/tesla-cruises-past-general-motors-to-become-most-valuable-us-car-maker-176250.html Electric car firm Tesla Inc (NASDAQ:TSLA) has become the  United States' most valuable car manufacturer, surpassing General Motors (NYSE:GM.), it emerged.

Shares surged up to 3% earlier taking the market cap beyond $51bn  (General Motors around $50bn).

Last week, column inches were filled as Tesla overtook Ford to become the second largest US car maker.

So it was only a matter of time...

The move is widely seen as an endorsement of Elon Musk's vision and investor belief that electric cars really will be the way forward for motoring.

Tesla delivered fewer than 80,000 vehicles globally last year compared to GM’s 10 million and its more-affordable Model 3 sedan is scheduled to roll out later this year.

Tesla was boosted earlier as it received its most bullish price forecast from a major Wall Street broker.

Piper Jaffray upgraded the stock to ‘overweight’ – the equivalent of ‘buy’ – from ‘neutral’.

It also increased its price target to US$368 from US$223.

According to FactSet, that’s the highest price target on Wall Street from one of the bigger brokers.

]]>
Mon, 10 Apr 2017 11:15:00 -0400 http://www.proactiveinvestors.com/companies/news/176250/tesla-cruises-past-general-motors-to-become-most-valuable-us-car-maker-176250.html
<![CDATA[News - Tesla hits record highs as major broker slaps US$328 target on its head ]]> http://www.proactiveinvestors.com/companies/news/176247/tesla-hits-record-highs-as-major-broker-slaps-us328-target-on-its-head-176247.html Shares in Tesla Inc (NASDAQ:TSLA) surged to all-time highs on Monday morning after the electric car maker received its most bullish price forecast from a major Wall Street broker.

Piper Jaffray upgraded the stock to ‘overweight’ – the equivalent of ‘buy’ – from ‘neutral’ and increased its price target to US$368 from US$223.

According to FactSet, that’s the highest price target on Wall Street from one of the bigger brokers.

A smaller firm, Dougherty & Co, has had a US$500 price target on Tesla for more than six months now.

“We have driven a Tesla for seven months in preparation for this report, and after conducting investor meetings with the company last week, we're finally ready to take a stand,” said analysts at Piper.

The analysts did warn that it will likely be a “bumpy ride” despite their confidence in their long-term destination.

“Even with all the risks, we think growth investors can’t afford to ignore this stock.”

They also stated that Tesla will begin Model 3 deliveries this year and not in the middle of next year as previously assumed.

Tesla shares are up 45% so far this year, and added 3% in the morning session on Monday to trade at US$312.

]]>
Mon, 10 Apr 2017 10:46:00 -0400 http://www.proactiveinvestors.com/companies/news/176247/tesla-hits-record-highs-as-major-broker-slaps-us328-target-on-its-head-176247.html
<![CDATA[News - Tesla's market cap overtakes Ford after shares rise to record ]]> http://www.proactiveinvestors.com/companies/news/175914/tesla-s-market-cap-overtakes-ford-after-shares-rise-to-record-175914.html Tesla Inc (NASDAQ:TSLA) has overtaken Ford to become the second largest US car maker by market capitalisation after its shares surged on a well-received first quarter trading update.

The electric-car manufacturer’s shares jumped 7.3% to close at a record US$298.52 in the US, putting its market capitalisation at US$48.7bn, compared to Ford’s US$44.6bn.

Tesla is now just a few billion behind General Motors’ US$50.9mln market capitalisation.

A record 25,000 vehicles

The rally in Tesla’s shares came after the company said it delivered a record 25,000 vehicles in the first quarter, up 65% on the same period a year earlier.

It marked a strong recovery from the 9% drop in deliveries in the fourth quarter, affected by output troubles.

Tesla also said it was on track to meet its guidance of 47,000 to 50,000 deliveries in the first half.

The company plans to produce 5,000 cars a week later this year after output of the new Model 3 begins in July.

Model 3 expected to boost Tesla sales.. 

The Model 3 is also expected to boost Tesla’s sales volumes as it will be more affordable than its other vehicles. At US$35,000, it will cost about half as much as the cheapest Model S, which is priced at more than US$70,000.

Investors believe Tesla stands to benefit from the shift towards electric vehicles and the advent of automated driving while GM and Ford have failed to convince the market they are the forefront of new technology.

"Tesla now boasts the fastest production car in the world, moving from 0-60 mph in 2.5 seconds and its battery range for its latest S model has also reached an impressive 265 miles in just one charge," said Jordan Hiscott, chief trader at Ayondo Markets.

"If the technology keeps improving, we’re likely to see Tesla stock rise even higher in the coming years.”

In an effort to address growing demand for electric cars, GM recently offloaded a bulk of its unprofitable European operations to focus on investing in technology.

Ford accelerating move towards electric..

Ford has also been adding jobs to accelerate its move towards electric and autonomous vehicles.

The two automakers have also bought technology companies to improve their in-house engineering expertise.

While Tesla's growing market cap means it is closer to taking over as the No.1 US car marker, it has few miles to travel before it reaches the same level of sales as it competitors. 

Data compiled by auto industry publication WardsAuto showed yesterday that GM sold 256,000 vehicles in March while Ford sold 236,000.

Tesla's sales for the same period were just 4,000 but its prospects for future growth have impressed investors. It is also considered a tech start-up company rather than an automaker.

"Technology has a huge part to play in this, with the investment from Tesla founder Elon Musk in the battery development factory Gigafactories clearly paying dividends in terms of the improvement in duration and overall power of its vehicles," said Hiscott.

]]>
Tue, 04 Apr 2017 09:44:00 -0400 http://www.proactiveinvestors.com/companies/news/175914/tesla-s-market-cap-overtakes-ford-after-shares-rise-to-record-175914.html
<![CDATA[News - Tesla's shares surge as it achieves record car deliveries in first quarter ]]> http://www.proactiveinvestors.com/companies/news/175827/tesla-s-shares-surge-as-it-achieves-record-car-deliveries-in-first-quarter-175827.html Electric car maker Tesla Inc (NASDAQ:TSLA) has delivered a record 25,000 vehicles in the first quarter, rebounding from production problems late last year.

Shares in Tesla jumped 3.89% to US$289 in US morning trading, above the all-time high close of US$286.04 on 4 September but below that day's intra-day record of US$292.42. 

The company delivered about 13,450 Model S cars and about 11,550 Model X SUVs in the first three months of the year.

The total represented a 65% increase on the same period last year.

Tesla said another 4,650 vehicles were being transported to customers at the end of the first quarter and will be included in second quarter deliveries.

Record Quarterly Deliveries for @TeslaMotors in Q1 2017: 25K #cars (Model S: 13,450 - Model X: 11,550) https://t.co/beg38yCpeW #infographic pic.twitter.com/YjP7ohoLLc

— The Missing Graph (@TheMissingGraph) 3 April 2017

It marks a strong recovery from the 9% drop in deliveries in the fourth quarter, affected by output troubles.

Tesla posted a US$121mln loss in the fourth quarter after reporting its first profit in three years in the third quarter. The group is expected to report another loss in the first quarter.

Tesla said it was on track to meet its guidance of 47,000 to 50,000 deliveries in the first half.

The company plans to produce 5,000 cars a week later this year after output of the new Model 3 begins in July.

The Model 3 is also expected to boost Tesla’s sales volumes as it will be more affordable than its other vehicles. At US$35,000, it will cost about half as much as the cheapest Model S, which is priced at more than US$70,000.

Tesla’s shares have jumped 30% since the start of year on positive forecasts for the Model 3.

In a sign of confidence for the group’s prospects, last week China’s Tencent Holdings bought a 5% stake in Telsa for nearly US$1.8bn.

Tesla, founded in 2003, is controlled by entrepreneur Elon Musk, who also owns space rocket firm, Space X. 

-- Updates share price, adds inforgraphic --

]]>
Mon, 03 Apr 2017 09:06:00 -0400 http://www.proactiveinvestors.com/companies/news/175827/tesla-s-shares-surge-as-it-achieves-record-car-deliveries-in-first-quarter-175827.html
<![CDATA[News - Elon Musk’s SpaceX makes history after successfully launching a recycled rocket booster ]]> http://www.proactiveinvestors.com/companies/news/175771/elon-musks-spacex-makes-history-after-successfully-launching-a-recycled-rocket-booster-175771.html Elon Musk’s SpaceX company made history yesterday after successfully launching a recycled rocket booster for the first time.

The Falcon 9 booster, which was previously used on a mission 11 months ago, helped send a telecommunications satellite into orbit from Florida's Kennedy Space Center.

Musk, chief executive of the rocket firm - as well as boss of electric carmaker Tesla Inc (NASDAQ:TSLA) - said: “"I think it's an amazing day for space."

He added: "It means you can fly and re-fly an orbit class booster, which is the most expensive part of the rocket. This is going to be, hopefully, a huge revolution in spaceflight."

Traditionally, rocket boosters have been expendable, with their various segments discarded and destroyed during an ascent.

By contrast, SpaceX aims to recover Falcon first-stage rockets and fly them multiple times to try to reduce the cost of its operations. 

]]>
Fri, 31 Mar 2017 14:22:00 -0400 http://www.proactiveinvestors.com/companies/news/175771/elon-musks-spacex-makes-history-after-successfully-launching-a-recycled-rocket-booster-175771.html
<![CDATA[News - RoboMusk: Now Tesla boss forms firm to help connect human brains to computers ]]> http://www.proactiveinvestors.com/companies/news/175540/robomusk-now-tesla-boss-forms-firm-to-help-connect-human-brains-to-computers-175540.html In another boost to his sci-fi credibility, Elon Musk - the boss of electric car maker Tesla Motors Inc (NASDAQ:TSLA) - has launched a new company which aims to develop technology that connects the human brains to computers.

The start-up firm, Neuralink, which is in its very early stages has been registered as a “medical research” firm,  according to a report from the Wall Street Journal, later confirmed by Musk in a tweet.

The report said the firm will develop so-called “neural lace” technology which would implant tiny electrodes into the brain, a technique could be used to improve memory or give humans added artificial intelligence.

Confirming the existence of the company last night, Musk tweeted: “Long Neuralink piece coming out on @waitbutwhy in about a week. Difficult to dedicate the time, but existential risk is too high not to. said more would be made public next week via the WaitButWhy website.”

As well as being chief executive of electric Tesla, Musk is involved with running space exploration company Space X, a project to reinvent transport called Hyperloop and a firm investigating the feasibility of boring tunnels underneath Los Angeles.

]]>
Tue, 28 Mar 2017 12:46:00 -0400 http://www.proactiveinvestors.com/companies/news/175540/robomusk-now-tesla-boss-forms-firm-to-help-connect-human-brains-to-computers-175540.html
<![CDATA[News - Tesla shares accelerate as Chinese group grabs 5% stake ]]> http://www.proactiveinvestors.com/companies/news/175549/tesla-shares-accelerate-as-chinese-group-grabs-5-stake-175549.html Shares in electric car giant Tesla Inc (NASDAQ: TSLA) accelerated in pre-market trade as it emerged that Chinese investment giant Tencent had taken a 5% stake.

Tesla, which was founded by Elon Musk, was up 2.44% in pre-market deals to stand at $6.58 a pop.

Tencent is a group which has various interests in social media, games and apps, and now..electric cars.

Tencent has spent $1.78bn on the investment - now owning over 8.167mln shares of the firm.

It makes the Chinese group the fifth-largest shareholder in Tesla, behind others, including Musk, who is the group's biggest shareholder, owning around 21%.

Tesla is about to launch its model 3 sedan and raised about $1.2bn by selling shares and convertible debt earlier this month.

]]>
Tue, 28 Mar 2017 09:06:00 -0400 http://www.proactiveinvestors.com/companies/news/175549/tesla-shares-accelerate-as-chinese-group-grabs-5-stake-175549.html
<![CDATA[News - Tesla Motors raises US$1bn as it readies for Model 3 launch ]]> http://www.proactiveinvestors.com/companies/news/174933/tesla-motors-raises-us1bn-as-it-readies-for-model-3-launch-174933.html Tesla Inc (NASDAQ:TSLA) rallied as it raised less money than expected for the launch of its mass market electric car, the Tesla 3 range.

Elon Musk, Tesla’s chief executive, had already warned a fund raise was on the way, but at US$1bn the amount was below the figure many analysts had forecast.

The financing will comprise US$250mln in new shares and US$750mln of convertible senior debt.

Musk, who will invest US$25mln personally, said there would be hedges in place to cap any potential dilution from the convertible notes.

Tesla has raised around $9bn in the past five years, but its market value is now US$42bn due to the excitement over the potential of its new car.

An overallotment provision will allow the underwriters to sell an extra 15% of the share element if demand is strong.

Musk said last month that Tesla intended to spend US$2bn - $2.5bn ahead of the start of Model 3 production in July.

Cash at the end of its last quarter was more than US$3bn, but Musk said Tesla needed a capital buffer as spending would go up even more as it integrates its recently acquired Solar City business and beefs up its manufacturing operation.

Shares rose 2.2% to US$261.37.

]]>
Thu, 16 Mar 2017 14:57:00 -0400 http://www.proactiveinvestors.com/companies/news/174933/tesla-motors-raises-us1bn-as-it-readies-for-model-3-launch-174933.html
<![CDATA[News - Tesla boss hints at possible capital raise later this year ]]> http://www.proactiveinvestors.com/companies/news/173606/tesla-boss-hints-at-possible-capital-raise-later-this-year-173606.html Tesla Inc (NASDAQ:TSLA) boss Elon Musk has hinted the company could go cap in hand to investors later on this year in a bid to drum up some more capital.

Musk said on an earnings call last night that the current business plan “could push it close to [the edge]” later on in the year, adding that a fundraise “probably makes sense…to reduce risk”.

The company’s share price has added more than 50% since its December lows despite no real news or catalysts, giving Musk the chance to replenish Tesla’s coffers.

“How close to the edge do we want to go? According to our financial plan, no capital needs to be raised for the Model 3, but we get very close to the edge,” said Musk.

“That’s probably not the best thing for shareholders on a risk-adjusted basis.”

His comments come ahead of a busy year for the US electric car maker.

Tesla has the launch of its first mass-market electric car, the Model 3, which remains on track for July, as well as the development of its massive battery plant or ‘Gigafactory’ as it’s otherwise known.

On top of all that, it’s got to try and oversee the integration of its recent Solar City acquisition.

The possibility of a capital raise comes as Tesla reported a narrower-than-expected loss in the final three months of 2016, while revenues rose more than Wall Street had forecast.

The company – which dropped ‘Motors’ from its name following the Solar City acquisition – reported a fourth quarter loss of US$121.3mln, or 78c a share, lower than the US$320.4mln, or US$2.44 a share, loss a year earlier.

Adjusting for a couple of one-offs, the loss of 69c a share was much slimmer than the US$1.13 analysts had forecast.

Revenues for the period almost doubled year-on-year to US$2.28bn to beat expectations, despite falling 1% from the previous quarter.

Tesla also revealed in a blog post that its chief financial officer, Jason Wheeler, is stepping down to “pursue opportunities in public policy”.

Wheeler’s departure after only a year or so in the job paves the way for Deepak Ahuja to return to his old post, having previously been CFO at Tesla for seven years before Wheeler’s arrival.

Shares gained more than 2% in pre-market trading to stand at US$279.31.

]]>
Thu, 23 Feb 2017 09:14:00 -0500 http://www.proactiveinvestors.com/companies/news/173606/tesla-boss-hints-at-possible-capital-raise-later-this-year-173606.html
<![CDATA[News - Tesla shares stall as it misses output target ]]> http://www.proactiveinvestors.com/companies/news/171161/tesla-shares-stall-as-it-misses-output-target-171161.html US electric carmaker Tesla Motors Inc (NASDAQ:TSLA) saw its share price stumble in pre-market trading on Wednesday after it missed quarterly output targets again.

Shares fell almost 5% early this morning before recovering slightly to sit at US$214.

Tesla blamed fresh production problems after it delivered only 22,200 vehicles in the fourth quarter of 2016, below its own target of 25,000.

That meant full-year deliveries totalled 76,230 compared to the 79,000 it was aiming for – which is itself a reduction from the 80,000 to 90,000 it had originally hoped to produce last year.

The main issue was the introduction of new hardware to improve the self-driving capability of its vehicles, which slowed production between October and early December.

Tesla did add that the problem has been resolved and has not affected production at the start of the New Year.

This is a big year for Tesla too, after it promised to launch its first mass-marketed vehicle, the Model 3.

As well as battling to keep its own promises, other carmakers are also putting the pressure on Tesla.

At the Consumer Electronics Show in Las Vegas, US start-up Faraday Future unveiled what it called a “new species” of electric car which it claims accelerates at a faster pace than Tesla’s top model.

The FF 91 can go from 0-60mph in 2.39 seconds to be precise, compared to Tesla’s best of 2.5 seconds.

Car giant Fiat Chrysler also showed off an electric, self-driving minivan at the show, although it was vague about when the concept would find its way into production vehicles.

]]>
Wed, 04 Jan 2017 09:20:00 -0500 http://www.proactiveinvestors.com/companies/news/171161/tesla-shares-stall-as-it-misses-output-target-171161.html
<![CDATA[News - Bosses of Tesla Motors Inc, Uber and PepsiCo to join Trump's talking shop ]]> http://www.proactiveinvestors.com/companies/news/170482/bosses-of-tesla-motors-inc-uber-and-pepsico-to-join-trump-s-talking-shop-170482.html President-elect Donald Trump continues to stuff his advisory team with chief executives from industry, with Tesla boss Elon Musk the latest to sign up.

The founder and chief executive officer of Tesla Motors Inc (NASDAQ:TSLA) will sit on a panel that will meet regularly to provide input on job creation and the generation of economic growth.

Travis Kalanick, the boss of taxi-hailing app firm Uber, will also be on the panel, which is led by Stephen Schwarzman, the chief executive of fund manager Blackstone, as will Indra Nooyi, the boss of soft drinks firm PepsiCo.

“My administration is going to work together with the private sector to improve the business climate and make it attractive for firms to create new jobs across the United States from Silicon Valley to the heartland,” Trump said.

]]>
Wed, 14 Dec 2016 10:14:00 -0500 http://www.proactiveinvestors.com/companies/news/170482/bosses-of-tesla-motors-inc-uber-and-pepsico-to-join-trump-s-talking-shop-170482.html
<![CDATA[News - GM races ahead of Tesla on electric car manufacture ]]> http://www.proactiveinvestors.com/companies/news/170429/gm-races-ahead-of-tesla-on-electric-car-manufacture-170429.html General Motors (NYSE:GM) has turned up the heat on Tesla Motors (NASDAQ:TSLA) in the race to produce mass-market electric cars, delivering its first Chevrolet Bolt to customers in its rival’s home state of California on Tuesday.

GM can now claim to have taken the lead in the race to deliver a fully electric car with a range of more than 200 miles, for a starting price lower than $40,000.

GM shares closed up 0.7% at $37.38 on Tuesday. Tesla shares, however, were up 3% at $198.15. 

]]>
Tue, 13 Dec 2016 15:59:00 -0500 http://www.proactiveinvestors.com/companies/news/170429/gm-races-ahead-of-tesla-on-electric-car-manufacture-170429.html
<![CDATA[News - Musk drums up support for Tesla-SolarCity tie-up ]]> http://www.proactiveinvestors.com/companies/news/168416/musk-drums-up-support-for-tesla-solarcity-tie-up-168416.html As energy combines go, plans for Tesla Motors (NASDAQ:TSLA) to tie with SolarCity (NASDAQ:SCTY) is a pivotal one for integrating renewable energy companies. It is just a shame that they share the same boss.

This week, the electric car maker whose autos are powered by lithium batteries, announced plans for Tesla to takeover SolarCity in what would mark a beefing up of its clean energy business.

Tesla founder Elon Musk said he is "pretty optimistic" shareholders will approve a $2.6bn deal to buy solar panel company SolarCity.

The billionaire, who is chairman of both companies, said he would be surprised if the deal did not go through next month.

Drumming up support for the takeover, Musk said early votes overwhelmingly favour the corporate move.

But some shareholders oppose the deal, arguing it is a conflict to combine two of Musk's firms.

Tesla also sought to address concerns about SolarCity's financial standing by revealing that the solar panel installer had raised about $1bn in funds in the last four months.

Mr Musk said there had been "quite a few naysayers", including big hedge funds, about Tesla's expansion into the energy business.

But he questioned how good they had been at predicting the outcome for Tesla in the past.

Investors will vote – a week after the outcome of the White House election race is known - on the deal on 17 November.

Tesla shares were down 0.5% at $189.73 while SolarCity shares were 1.1% lower at $18.86 on Wednesday.

]]>
Wed, 02 Nov 2016 10:47:00 -0400 http://www.proactiveinvestors.com/companies/news/168416/musk-drums-up-support-for-tesla-solarcity-tie-up-168416.html
<![CDATA[News - Tesla throws down gauntlet over driverless cars ]]> http://www.proactiveinvestors.com/companies/news/167724/tesla-throws-down-gauntlet-over-driverless-cars-167724.html Elon Musk, the founder of Tesla Motors Inc (NASDAQ:TSLA) has promised that all cars it produces in future will have the capacity to be driverless.

A demonstration drive of a fully self-driving Tesla from Los Angeles to New York will happen by the end of next year, Musk added.

The electric vehicle will drive, recharge and park itself without human input, he said.

In a news conference, Musk said it made sense to start to fit the tech into its cars now rather than wait for regulatory approval and then do it.

“They will be at the highest level of autonomy,” he said with all of the hardware needed for full self-driving capability at a safety level “substantially greater than that of a human driver."

Tesla’s move into the autonomous driving has been dogged by controversy including one fatality earlier this year in the US, when the driver was using its semi-autonomous “Autopilot” mode.

Musk criticised what he said was excessive coverage of that accident and contrasted it with the 1.2mln people who die every year in car crashes.

Cars produced from now on will contain multiple sensors, eight cameras and software that effectively made it a supercomputer, he said.

Exhaustive testing in real-live situations will be carried out before the system went live and until then the software would operate in a shadow mode, where the action it would have taken in certain situations is recorded and monitored. 

Tesla is not alone in developing driverless technology, though. Ford, BMW, Google and even taxi software firm Uber are all working intensively on vehicles that eliminate the need for a driver.

 

]]>
Thu, 20 Oct 2016 12:51:00 -0400 http://www.proactiveinvestors.com/companies/news/167724/tesla-throws-down-gauntlet-over-driverless-cars-167724.html
<![CDATA[News - Tesla dented by Goldman downgrade ]]> http://www.proactiveinvestors.com/companies/news/167033/tesla-dented-by-goldman-downgrade-167033.html Tesla Motors Inc (NASDAQ:TSLA) shares eased lower as Goldman Sachs chopped its price target by almost a quarter and reduced its investment view to hold.

The heavyweight US broker said that Tesla’s proposed acquisition of Solar City combines two high growth, high cash burn business and makes the business overall higher risk.

Goldman expects the electric car maker to post positive earnings for the recent three months.

But the additional capital now earmarked for M&A and the possibility of a further delay to the launch of the Model 3, means neutral rather than buy is now Goldman’s view.

Shares eased 3% to US$201.80.

]]>
Thu, 06 Oct 2016 14:59:00 -0400 http://www.proactiveinvestors.com/companies/news/167033/tesla-dented-by-goldman-downgrade-167033.html