Tesla (TSLA) is best bought on recent ‘market dislocation,’ says Wall St


Tesla stock (NASDAQ:TSLA) recently received an updated outlook from Piper Sandler, with analyst Alexander Potter emphasizing the electric car maker’s long-term perspective in a recent note. According to the analyst, TSLA should be bought on current “market dislocation,” particularly as the electric car maker’s overall prospects remain stable.

Potter actually lowered Piper Sandler’s price target on TSLA from $928 to $820 per share. That’s still a potential 36% upside from Tesla stock’s closing price of $528 per share on Thursday. But despite his lower price target on TSLA shares, Potter kept his “Overweight” rating on the stock.

In a recent note, Potter stated that Tesla investors should be using the recent market dislocation to buy TSLA. He added that while the electric car maker’s Q1 2020 results will most certainly reveal a downside versus published consensus, the company’s long-term positioning remains effective.

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The analyst further noted that Tesla’s “recently-fortified” balance sheet should provide ample liquidity to the electric car maker. This is especially advantageous for Tesla since the company has no major debt maturities to address until March 2021. Lastly, Potter stated that Tesla benefits from company-specific tailwinds that should partially offset macro weaknesses.

The Piper Sandler analyst’s estimates about Tesla’s long-term prospects seem to be a solid argument, especially considering the company’s current lineup of vehicles and its overseas activities. Tesla has recently started deliveries of the Model Y crossover, for example, and that vehicle could prove to be the electric car maker’s most disruptive EV yet.

The Model Y shares 75% of its parts with the Model 3 sedan, a car that Tesla spent years perfecting on the production line. This means that the Model Y’s design and production are built on every lesson that the company learned over the Model 3 ramp. Several innovations were also rolled out to the Y, such as a new heat pump system, a radar heater, and a new body cast design. All these would likely allow Tesla to optimize the Model Y for maximum profitability.

Overseas, Tesla is also putting the pedal to the metal. After successfully battling the coronavirus outbreak in its Gigafactory 3 facility, Tesla has resumed full operations on the Shanghai-based site. Made-in-China Model 3 production has reportedly hit 3,000 per week, and construction on the massive Phase 2 zone of the plant is accelerating. Even in Brandenburg, where Gigafactory Berlin is poised to be built, ground clearing activities have continued, hinting at progress on the site despite Europe’s current situation with the coronavirus.

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

Tesla (TSLA) is best bought on recent ‘market dislocation,’ says Wall St

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SpaceX «DARKSAT» results: can Starlink and astronomy happily coexist?


Astronomers have begun to gather and analyze detailed observations of a SpaceX Starlink satellite prototype officially labeled DARKSAT and the initial results hint that the satellite constellation should be able to happily coexist with ground-based astronomy in the future.

Since SpaceX began launching batches of 60 Starlink satellites in May 2019, the company has raised the ire of parts of the astronomy community and simultaneously awed and inspired many less technical observers with clusters of shooting star-like satellites that are easily visible after launches. While the mid-sized spacecraft do become much dimmer as they raise their orbits from ~300 km (185 mi) to 550 km (340 mi), they are far from invisible even at that operational altitude. It’s safe to say that the current impact on ground-based astronomy is still just shy of negligible even with 360 satellites in orbit, but that impact is assuredly greater than zero and the relatively bright spacecraft have already interrupted telescope observations at many sites around the world.

Given that the 360 satellites already in orbit are just a tiny fraction of the ~4400, ~12,000, or even ~40,000 that SpaceX could one day launch, it would be irresponsible to argue that the constellation’s impact – and the impact of others like it – will continue to be minor as the number of satellites grows. Thankfully, while it doesn’t appear that prospective low Earth orbit (LEO) constellation architects anticipated the potential astronomy impact, SpaceX’s Starlink team has rapidly responded and already launched a satellite featuring tweaks designed to dim its appearance from the ground. For several reasons, the initial results from “DARKSAT” are extremely promising – now visible below in some of the first photos offering a useful comparison.

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Launched on January 7th, 2020, a set of 20 spacecraft including DARKSAT – representing a single “plane” of the broader Starlink constellation – all arrived at their operational ~550 km (340 mi) orbits by February 23rd. As previously discussed on Teslarati, initial results first published on March 18th revealed that the Starlink DARKSAT prototype – essentially an early alpha test for darkening techniques – was already 55% darker than unmodified spacecraft. While making satellites less reflective makes thermal management a much greater challenge, DARKSAT has managed to raise its orbit and begin operations without issue, although it’s unknown whether the satellite’s antennas and avionics are also functioning nominally.

Falcon 9 B1049 lifted off for the fourth time with a batch of 60 Starlink satellites on January 7th. (Richard Angle)

For darker spacecraft, perhaps the most important test will be long-term reliability, as constantly absorbing more heat than a reflective satellite is likely to put their structure, avionics, and radiators through significantly more thermal stress. As such, SpaceX may launch a limited number of additional darkened prototypes over the coming months but is much less likely to darken all satellites on any given launch until DARKSATs have successfully operated in orbit for months or even years.

On the ground, SpaceX may try to perform sped-up stress testing, but proving that darker satellites are a viable solution will almost invariably take time. Earlier this month, CEO Elon Musk revealed that SpaceX may attempt to design deployable solar shades for Starlink satellites if darkening their bodies is not enough to fully mitigate major impacts to astronomy. Knowing SpaceX, the first in-orbit solar shade test(s) could happen during any of several upcoming Starlink launches.

While all satellites struggle with thermal management and typically rely on mirror-like foil insulation and shiny surfaces to stay cool, Starlink’s uniquely flat and rectangular design makes it exceptionally reflective. (Teslarati – SpaceX)

Adding reliable, deployable solar shades without appreciably raising Starlink’s production costs could be a major challenge, given the fundamental complexity of large, deployable mechanisms in space, but SpaceX – if anyone – is likely up to the challenge. More importantly, the fact that SpaceX’s very first attempt at reducing Starlink albedo (reflectivity) has produced a satellite 55% darker than its peers suggests that much more can probably be done along those lines, given additional time for extra experiments and deeper optimization.

As a result, it may be the case that SpaceX ends up launching 750-1000+ reflective Starlink satellites before an affordable, mass-producible DARKSAT variant is ready to take over. In that event, Starlink could plausibly have a small to moderate negative impact on ground-based astronomy for several years. However, comments made by SpaceX executives over the years suggest that no single Starlink satellite is likely to operate for more than five or so years before being replaced, meaning that the entire constellation would be continuously refreshed (as long as it’s generating revenue). Even if a thousand bright(er) Starlink satellites make life a bit harder for some astronomers, the fact remains that the consequences of any single Starlink satellite variant – assuming SpaceX remains serious about fully mitigating the constellation’s impact – are inherently temporary.

An animation of SpaceX’s Starlink satellite constellation. (SpaceX – gif by Teslarati)

If SpaceX continues to make progress darkening satellites and developing cheap solar shades, it seems all but guaranteed that even a constellation of tens of thousands of Starlink satellites will be able happily coexist with the astronomy community, all the while delivering cheap, fast internet to millions of people – especially those lacking access – around the world.

SpaceX «DARKSAT» results: can Starlink and astronomy happily coexist?

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Livestream of Tesla Model Y teardown is coming from industry expert Sandy Munro


The Tesla Model Y will undergo a full teardown on Livestream by automotive industry veteran Sandy Munro, beginning April 2.

Munro made the revelation in an episode of E for Electric on YouTube, while offering his personal anecdotes about the auto industry’s response to the coronavirus pandemic.

Initially, the automotive veteran did not have high hopes on taking delivery of a Model Y, after being told that the car would not arrive. However, just hours later, the sentiment changed.

“At 6 in the morning, I was told we won’t be getting a car. And then, it’s 10 o’clock, and they said ‘Do you want an opened truck or closed truck for shipping?’ and, so it’s on the way,” Munro said with a smile on his face.

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Munro’s vehicle teardowns have been a valuable tool for competitive analysis by automotive industry experts. His first teardown of a Tesla drew heavy criticism after he called Model 3’s build quality a “miserable job.” However, in a subsequent analysis of the teardown, Munro discovered Tesla’s ability to maintain an impressive 30% profit margin on the Model 3, which stood significantly higher than the other electric vehicles on the market.

Munro and Associates’ Livestream of the Model Y teardown will begin on April 2, while the rapid disassembly will take place on April 6, at Munrolive.com. The idea for a live teardown came from company President Corey Steuben, when brainstorming ways to launch the new MunroLive website. “We’ll talk about what we found, and what we’re excited about,” notes Munro.

Watch Sandy Munro’s interview with E for Electric’s Alex Guberman below.

Livestream of Tesla Model Y teardown is coming from industry expert Sandy Munro

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Top 6 Tesla Model Y hidden tidbits that you didn’t know


Tesla Model Y is full of new convenience features that make the ownership experience of the electric crossover second to none. However, what goes unseen are secret tidbits that Tesla engineers implemented in the Model Y that make it stand even further apart from other vehicles in its category.

YouTuber and Tesla owner Tesla Raj delved into his six favorite “secrets” of the Model Y that you may not know of.

Magnetic Sun Visors

The first change on the Model Y that Raj notes as one of his favorites on the new crossover is the magnetic sun visor “clip.” In past Tesla vehicles, like the Model 3, the sun visor has utilized a clip and bar system, where the bar snaps into the clip, locking the visor into place.

Tesla improved upon the visor by implementing a magnet system that simply closes the visor into place without excessive pulling or pushing that can create a hassle for a driver when operating the vehicle. The visor still extends and is maneuverable so it can be adjusted to block the sun at any angle. The magnetic system creates a more relaxed lodging and dislodging experience for drivers when they would like to use it to keep the bright light in the sky out of their eyes.

The Model Y’s magnetic sun visor. (Credit: YouTube/Tesla Raj)

Door Seals

Arguably, one of the most satisfying feelings that define luxury over economy is the sound of a closing door.

Tesla has installed a sturdier, thicker, and firmer door seal with the Model Y, creating a distinctive and robust sound indicating the car door is sealed shut. Raj compared the sound Model Y makes when shutting the door with that of the Model 3 and took notice of a deeper and sturdier sound from the all-electric crossover. Moreover, the seal in the Model Y is of better quality and contours around the vehicle’s curves with more precision over Model 3.

The Model Y’s new and improved door seals. (Credit: YouTube/Tesla Raj)
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Trunk Vents

Model Y includes trunk vents on both corners of the rear trunk where the side compartments are located. The driver’s side vent houses the Charge Port pull tab, that can alleviate a jammed charging port door if it becomes stuck.

The passenger side vent contains the vehicle’s subwoofer and acts as relief for the air that pushes through the speaker.

Under-Seat Storage Space

The driver’s and passenger’s seats of the Model Y both have a 5″ tall by 14″ wide by 7″ long space beneath them, creating the impression that it could be used to store anything from books, to games, to possibly a homemade drawer under it. Raj believes someone with the proper craftsmanship could build a small drawer that could be fashioned under the seat, creating extra storage space any sort of object. With kids, this could be a perfect opportunity to store coloring books, handheld game systems, DVDs, or other entertainment outlets during a long drive.

The Model Y’s under-seat storage. (Credit: YouTube/Tesla Raj)

Hood/Frunk Polymer Seal

The frunk on previous Tesla models seemed to have a considerable space between the actual frunk door and the bottom of the storage compartment, leaving space for items, like food or drinks, to move around excessively. This increased the risk of spillage or movement, so Tesla created a large seal that gets rid of this extra space. The storage is still the same as the seal does not pass the upper-outer lip of the frunk, but it certainly creates a more secure environment for whatever is stored in the compartment.

The Model Y’s frunk seal. (Credit: YouTube/Tesla Raj)

Pedestrian Warning Speaker

In Early September 2019, Tesla complied with the National Highway Transportation Safety Administration (NHTSA) mandate that required electric vehicles traveling below 19 MPH to omit a noise to increase pedestrian awareness of quiet electric cars. Model 3’s manufactured around that time were all outfitted with this speaker, and it appears the Model Y also has speakers as well. While the mandate does not go into effect until September 2020.

Tesla Raj’s full video on six Model Y secrets is below.

Top 6 Tesla Model Y hidden tidbits that you didn’t know

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Tesla CEO Elon Musk commits to support of NYC in coronavirus relief efforts


New York City Mayor Bill de Blasio extended words of gratitude toward CEO Elon Musk on Friday, in response to Tesla’s commitment to donate ventilators to New York, which has become the epicenter of coronavirus cases in the US.

“You’re most welcome. Credit to the Tesla team. Will do our best to help in any way,” said Musk, in reply to de Blasio’s outreach.

Musk added that the most effective way to fight the shortage of ventilators is to recognize the exact locations of where they are needed and get them to those hospitals in an efficient fashion. “Biggest value Tesla is providing is the precise delivery of ventilators exactly to the ICU where & when they’re needed. There are many ventilators in warehouses, but stuck in logistics/routing/paperwork issues,” Musk stated.

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A follower of Musk on Twitter then asked if Tesla would begin charging hospitals or medical facilities for ventilators that they either buy or manufacture themselves.

Musk clarified that he or his company would accept any compensation for the machines that will help save lives. “We will give away all our ventilators, whether we buy them or build them,” the Tesla CEO said.

The donation of ventilators from Musk to the city came in response to de Blasio’s request for help on March 19. On that day, Musk tweeted that Tesla would be willing to manufacture ventilators if there was a shortage. The tweet incited a response from de Blasio, who stated, “New York City is buying!”

 

In the wake of the coronavirus pandemic, Musk has stated the best response is to remain calm and not panic. While Tesla’s facilities in Fremont, California, and Buffalo, New York remain closed for production, their doors are opening for the manufacturing of third party ventilator systems. Initially, Musk struck up a conversation with a team from Medtronics. This conversation eventually led to Tesla offering its Fremont plant as a manufacturing facility for the medical equipment company to increase its production of ventilators. CEO Omar Ishrak confirmed the partnership between Tesla and Medtronics on CNBC on Wednesday.

Musk’s efforts span outside of New York. Earlier this week, he delivered 1,200 ventilators to the city of Los Angeles free of charge. China had an excess of ventilators, so Musk took it upon himself to purchase them and deliver the systems to Los Angeles to assist with COVID-19 affected patients. Tesla’s effort to help with the ventilator shortage will more than likely help patients with severe respiratory problems get the help they need, especially with the massive deficit in machines compared to severe cases of the virus.

While Fremont remains partially opened for some workers to help with loading Tesla vehicles onto haulers for delivery, Giga New York remains closed, even though many New York officials are requesting the plant be reopened for ventilator production.

Tesla CEO Elon Musk commits to support of NYC in coronavirus relief efforts

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Tesla Autopilot stopped at a red traffic light and stop sign on its own


A new video showing a Tesla Model 3 being able to stop at a red traffic light automatically is a good indication that the next-iteration of Autopilot software with “feature complete” Full Self-Driving could be well on its way.

Tesla’s optional Full Self-Driving Capability (FSD) has promised the ability to automatically “recognize and respond to traffic lights and stop signs” for more than a year. In early 2019, Tesla hacker @greentheonly surfaced a dormant Autopilot feature that would allow the vehicle to stop at a red light automatically. The discovery, along with firm conviction by CEO Elon Musk that the company’s Autopilot suite would soon take on more autonomy, Tesla owners with FSD waited with high hopes for the next over-the-air update that would introduce a more robust Autopilot.

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Tesla remained quiet on when FSD’s “coming later this year” features would arrive, only addressing the continuous and fast-paced development of its increasingly smarter Neural Network, the heart of its FSD system. However, in December 2019, Tesla owners would soon get a glimpse of the full suite of Full Self-Driving features when the company rolled out software that could visualize complex objects around the vehicle.

Aside from the ability to display traffic lights, stop signs, and unique road markings, Tesla owners with Hardware 3 began showcasing their vehicle’s ability to identify garbage cans, street pylons, and even handicap parking spaces on its own.

Tesla Model 3 gets Full Self-Driving HW3 upgrade: Full details with lessons learned

A new video shared on Twitter by Out of Spec Motoring gives us the best look yet of Tesla Autopilot being able to come to a complete stop on its own when encountering a red traffic light.

In addition to the traffic signal visualization on the center touchscreen, a distinct red line is displayed in front of the vehicle icon when stopped. The red line can be seen fading away as the vehicle regains speed after the traffic signal turns green.

Beyond the ability to stop automatically at a red traffic light, Out of Spec Motoring notes that the Model 3 was also able to automatically stop for stop signs.

 

Tesla Autopilot stopped at a red traffic light and stop sign on its own

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SpaceX quarantines a few employees after first coronavirus cases confirmed at HQ


U.S. launches remain a top priority during the coronavirus pandemic. But that doesn’t mean that launch providers are not feeling its effects. SpaceX and United Launch Alliance are progressing full steam ahead, tackling its respective launch manifests as if everything were status quo.

However, SpaceX has begun to feel the effects of the virus. First, its upcoming SAOCOM 1B launch, which was originally slated to liftoff later this month, has been put on indefinite hold. That’s because the payload is an Argentinian satellite, and Argentina has put strict travel restrictions in place until further notice.

The delay doesn’t come as much surprise as countries around the world put restrictions on travel to mitigate the effects of the SARS-CoV-2 virus, which causes the COVID-19 disease. This deadly virus has been wreaking havoc across the globe, while overwhelming healthcare systems.

But despite being an essential business and needing to stay open, it doesn’t mean that SpaceX is immune. This week, two workers at the company’s headquarters tested positive for the virus.

Tesla donates supply of 3M masks to medical facilities to help staff protect themselves against the coronavirus. SpaceX will begin making necessary medical supplies to donate as well. Credit: UCLA (Credit: UCLA)
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At least one employee and one health care worker have tested positive, with others who came in contact with these individuals sent home to quarantine themselves for 14 days. The SpaceX employee had recently traveled internationally, and the company is obtaining more thermometers to conduct more employee screenings for the virus.

One Medical, which provides health services on-site at SpaceX HQ, reminded its personnel (and anyone else) who exhibit symptoms of the disease to stay home and get tested immediately.

The company has also begun to take steps to help its employees better protect themselves. This includes making hand sanitizer and face shields, which the company plans to make in excess in order to donate to local hospitals. Additionally, the company is furnishing more sanitizing options as well as spreading work stations farther apart.

Falcon 9 B1048 is pictured during launch, one frame (~0.05s) before it suffered an engine failure. (SpaceX)

As of now, U.S. launches are unaffected, aside from the SAOCOM launch. This is because SpaceX and other launch providers support national security missions, and important infrastructure like GPS, and are therefore deemed essential. So employees are required to report to work unless they are able to telework or are not feeling well.

The company had planned on launching two astronauts for NASA as early as May. That targeted date may be in jeopardy after two recent anomalies. SpaceX launched its latest batch of Starlink satellites on March 18, using a veteran Falcon 9 rocket to loft them. The five-time flier experienced an issue with one of its engines during flight.

As a result, the booster was unable to successfully land on the drone ship stationed out in the Atlantic. Following the launch, SpaceX announced that it would be investigating the issue to determine what caused it. NASA has since joined in the investigation to ensure that everything is as it should be with the Falcon 9.

That anomaly, coupled with the fact that SpaceX’s latest parachute test went awry, means that the upcoming crew mission could be delayed. If it will and by how much are yet to be determined.

SpaceX quarantines a few employees after first coronavirus cases confirmed at HQ

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SpaceX is aiding in efforts to mitigate crucial medical supply shortages


In the wake of the coronavirus pandemic, medical staff across the United States lack enough crucial supplies necessary to protect themselves against infection. Earlier this week, SpaceX CEO Elon Musk delivered a batch of much-needed face masks and ventilators to hospitals facing a shortage.

Now he wants to expand those efforts to other aspects of personal protective equipment, or PPE. According to an internal SpaceX memo, obtained by CNBC, Musk has directed his employees to start producing face masks, and hand sanitizer. The supplies will be donated to organizations in need.

Hospital staff are overwhelmed with the rising number of cases, and simply do not have enough gear to properly protect themselves. As a result, many have posted pleas on social media asking for the public’s help using the hashtags #getmeppe or #getusppe. The most crucial items needed are face masks, disinfectant, sanitizer, gloves, gowns, as well as glasses and face shields.

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Retailers like JoAnn’s fabrics have even joined the cause, instructing sewing aficionados to drop off any masks they can make. The store will deliver them to local hospitals. Ford, GM, and Tesla have already received government approval to make ventilators in their factories.

In that same vein, SpaceX employees were told over the weekend that so far, the aerospace company has manufactured and delivered 75 face shields, and donated 100 protective suits to the staff at Cedar Sinai hospital. But that’s not all; the company wants to ramp up donations and begin to produce hand sanitizer that will be CDC compliant and effective against the SARS-Cov-2 virus.

Recently, Donald Trump signed into law a Defense Production Act, allowing factories to make much needed medical supplies. The 70-year-old law, established in 1950, enables the president to order private industry to produce crucial equipment and supplies in an emergency, like the current pandemic.

In addition to the supply shortage, the country is also facing a blood shortage. And SpaceX is here to help with that as well. The company plans to host a blood drive at the American Red Cross in Hawthorne later this week, which is where SpaceX is headquartered at.

SpaceX is aiding in efforts to mitigate crucial medical supply shortages

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GM and Ford’s EV production plans for the US have leaked, and they are a joke


It appears that Tesla will remain the only serious electric car maker in the United States for quite some time. This is because despite the grand gestures and proclamations of an electric car-centric future from American automakers General Motors and Ford, the two companies’ actual production plans for North America are still centered on large, internal combustion-powered vehicles. 

According to detailed production plans from GM and Ford that were viewed by Reuters, the two biggest American automakers will be making 5 million petrol-powered SUVs and pickup trucks in 2026, and only 320,000 electric vehicles. That’s just about 5% of Ford and GM’s combined vehicle production in North America, and less than Tesla’s output in 2019 from its one factory in Fremont, CA. 

Putting it mildly, a production target of 320,000 electric vehicles in 2026 is a joke. Both companies, after all, have been insisting that they are all-in on an electric car push. Earlier this month, GM CEO Mary Barra announced a $20 billion project to bring a million EVs to market by the middle of the 2020s, though most of these vehicles will be sold in China. Ford is the same, with Executive Chairman Bill Ford stating that the company is “all-in” on an electric car push. 

If GM and Ford’s production plans for North America are any indication, it appears that a lot of these optimistic EV-centric statements may be just that: statements, and nothing more. According to data from AutoForecast Solutions, GM and Ford’s North American production of SUV models will outpace traditional cars by over 8:1 in 2026. Among these SUVs, 93% will be petrol-powered. 

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Reuters noted that AutoForecast’s data is based on planning information provided to suppliers by the carmakers themselves. Interestingly enough, Ford and GM executives did not dispute the accuracy of the data when they were interviewed by the publication. On the contrary, Hau Thai-Tang, Ford’s chief product development and purchasing officer, argued that the strategy simply makes sense. “We’re trying to time this with the natural demand of consumers (so) we’re not forced to do artificial things, and we don’t violate the laws of economics,” he said. 

Doug Parks, GM’s executive vice president of global product development, purchasing, and supply chain, was on the same page. “We want to meet customer demand with the best possible (carbon) footprint on the planet to help improve the CO2 (carbon dioxide) situation,” he said. 

Considering these statements, it seems almost strange that the Big Two American automakers have been announcing their supposed dedication towards electrification. For AutoForecast vice president Sam Fiorani, this is most likely motivated by Ford and GM’s desire to placate Wall Street, which expects EVs to become mainstream in the near future. 

“GM and Ford understand that buyers want more SUVs and trucks, but they’re also trying to play to Wall Street, which thinks the future is all about electric vehicles. The Detroit automakers would love to get a little of that Tesla magic and money,” he said. 

With such a strategy in place for North America, Ford and GM’s upcoming electric cars risk becoming yet another generation of compliance cars. This is a shame, as some EVs announced by the two automakers have the potential to cause some serious disruptions in the auto market. Among these is the Ford Mustang Mach-E, a vehicle that matches the Tesla Model Y on paper, and the GMC Hummer EV, a monster of a pickup that can be a rival to Tesla’s Cybertruck. 

GM and Ford’s EV production plans for the US have leaked, and they are a joke

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Tesla stock (TSLA) has surged 40% in a week


Tesla stock (NASDAQ:TSLA) has surged 40% over the past seven days. Tesla’s recovery comes amidst some updates from Wall Street about the electric car maker’s short-term and long-term prospects.

In a note earlier this week, Argus Research analyst Bill Selesky cut his rating on TSLA stock from “Buy” to “Hold.” Explaining his new outlook, Selesky stated that deliveries of the company would likely be lower due to the ongoing coronavirus pandemic, as well as the shuttering of Tesla’s production facilities.

“Prior to the outbreak, we had expected fairly robust deliveries from Tesla in 2020, as consumers continued to flock to the Model S, Model X, and more recently, the Model 3,” Selesky wrote, adding that Argus’ delivery forecast for Tesla this year has been updated to about 409,000 cars, a 19% decrease from the firm’s initial estimates.

Selesky further noted that Tesla still holds strong long-term prospects, though he believed that the company’s products would likely not be a priority for consumers in the near term.

“We still think that Tesla has strong long-term prospects. However, in the near term, we believe that consumers will focus on basic concerns (food, safety, employment, etc.) and expect consumer confidence and spending to take a major hit as consumers defer large discretionary purchases,” he wrote.

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Similar to the Argus analyst, Citi analyst Itay Michaeli adjusted his expectations for the electric car maker this year. While he kept his “Buy” rating on TSLA stock, Michaeli lowered his price target for Tesla to $246 from $312. Citi’s 2020 delivery forecast for Tesla was also reduced to about 434,000 cars from the original 517,000.

Elaborating further, the Citi analyst stated that Tesla would likely post an adjusted loss in the first and second quarters, breaking even in the third quarter and posting a profit in the fourth quarter. Michaeli also mentioned that Tesla’s $2.3 billion capital raise in February “added an important cushion to absorb our modeled shutdown in Q2, when Tesla is likely to face operating losses and a working capital drain.”

Interestingly enough, UBS recently upgrade Tesla stock from “Sell” to “Neutral.” Analysts from the firm stated that the company has relatively high demand visibility and sustained tech leadership in the EV market. The firm also mentioned the Model Y and the Made-in-China Model 3, both of which could affect the company’s numbers this year.

“We reiterate our view that Tesla should be able to defend its technology leadership in EV powertrain, connectivity, and autonomy and rapidly gain market share. Also, we think demand for Tesla’s products is not at risk with oil at $30/bbl because its products are already on sticker price parity vs. equivalent premium cars (and superior in cost of ownership),” the UBS analysts noted.

Tesla stock is as volatile as ever, and as the greater market felt the effects of the coronavirus pandemic, the electric car maker’s shares have swung wildly, going as low as $351 per share last week. On the flip side, Tesla stock has exhibited an equally spirited recovery, rising as much as 47% over the past seven days. This Thursday, TSLA stock traded as high as $559.98 per share after the opening bell.

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

Tesla stock (TSLA) has surged 40% in a week

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