Tesla

Tesla will report March quarter results this Wednesday, April 29. Earlier this month, Tesla released March quarter deliveries of 88.4k vehicles, up 40% year over year compared to the US auto industry (limited comparison) down 29%. We see three areas…

This year is going to be ugly for the auto industry, and Tesla is showing signs that it has a powerful demand advantage over its competitors. March quarter delivery numbers were up 40% year over year to 88.4k compared to…

It would be easy to get overwhelmed by the fact that everything has changed for a time. But, in an attempt to understand the new trajectory of our world, we resolve to push through and try to separate what we…

Tesla announced that its Fremont and Buffalo factories are closing production indefinitely. This, of course, is the prudent move, prioritizing employee safety. Given the company’s current $8B plus in cash on hand and the fact that variable production costs will…

Update: as of Wednesday, March 18th, Tesla is continuing operations at Fremont, we believe at about 25% capacity. We continue to believe that the company will eventually have to shut down the factory altogether apart from “minimum basic operations” to…

After Elon Musk tweeted that Tesla is currently scouting locations for a Cybertruck/Model Y Gigafactory, we began exploring the potential impact of Tesla producing cars in locations outside of Fremont, CA. As expected, we found that diversifying manufacturing locations is…

Back in November following Tesla’s Cybertruck announcement, we published a note titled Cybertruck Misses Core Truck Buyer, But Still An Incremental Positive. Following 22 conversations with midwest-based construction pros, a core truck-buying segment, we’ve realized we were wrong, as early…

Tesla plans to capitalize on its recent surge in value by issuing 2.65M new shares with expected proceeds of $2.3B. With the stock down as much as 7% in pre-market trading and up 5.5% during the day, investors are signaling…

There are three big questions that I always return to when investing in companies big or small, public or private: 1. Does this solve a time, money, or meaning problem? From a first principles standpoint, time, money, and meaning are…

Bottom Line: Tesla’s market cap has nearly doubled over the last month and has tripled since the end of Q3. The excitement driving such a dramatic rise presents short term risk. We believe current pricing may be overlooking: Sequential delivery…

Tesla shares are up 20% today following a 45% move over the previous month.  The most recent share price surge is attributed to a combination of two factors: short-covering and greater investor optimism that Tesla is a tech company that…

Tesla reported Dec-19 earnings of $2.14 per share (vs expectations of $1.72) and revenue of $7.38B (vs expectations of $7.02B). The company generated $1B in operating cash flow less capex vs. the Street at $429m. Shares were up much as…