Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
4% bounce yesterday! wonder why?
“While skeptics may focus on less than 20% automotive gross margin, we think an obsession with this metric is unwarranted,” Piper Sandler analyst Alexander Potter wrote in a note. “Once the dust settles, Tesla should bounce back.”
Sliding every day.
Next quarter atleast need some solid news.
Without price cuts they cannot meet delivery numbers but that hurt margins hitting a 2yr low.
What can turnaround this?
I think inflation need to come down first and mild recession should help improve margins and delivery numbers?
Jefferies analyst forecasting 19% margin for 2023 Fcf down by 44% to $7.3billion!
If Tesla can improve these numbers by year end then chance to get back to $200
The executive shared some details about improvements in production output this quarter and focused on reducing costs going forward in preparation for Cybertruck volume production:
We made significant improvements in both areas. On Texas production, we increased 50% quarter-over-quarter, through yields increased 12% and peak rate increased by 20% and through yields improved by 20%. Altogether, the team accomplished a 25% reduction in COGS over the quarter and we are on track to achieve steady-state cost targets over the next 12 months. And going forward for the rest of the year, the priority one is to yield in cost for the 4680 program as we steadily ramp production ahead of Cybertruck next year.
Baglino gave an update on that front:
Structural pack, we saw big improvements with pack manufacturing with the 4680 cell on the structural pack concept, 50% lower capex and 66% smaller factory with the same output in gigawatt hours per year. We do believe structural as a concept is a good one. It’s simpler. We’ll continue to structurally load the cells and use the pack as the floor of the vehicle while iterating the design to closer to B-level execution of this A-level architecture in future programs. And zooming out for the 4680 team Q1 was all about cost and quality.
https://electrek.co/2023/04/21/tesla-update-4680-battery-cell/
The automaker claimed a potential to reduce battery cost by over 50% with the new design; it has been trying to bring it to volume production since, but it has run into some bottlenecks.
In a conference call following the release of its Q1 2023 financial results, Tesla gave a detailed update about its 4680 battery cell production.
Drew Baglino, Tesla’s senior VP of engineering, said about the 4680 cell:
On Battery Day, we established a cost-down roadmap through 2026 across five areas of effort. There was the cell design we discussed; anode and cathode materials, the structural pack concept, and the cell factory itself. We’ve been making progress across all these aspects since then. For the Cell Factory, for the Texas 4680 factory, we are part way through building and commissioning and installing and operating, will be 70% lower capex per gigawatt hour than typical cell factories when fully ramped in line with what we described on Battery Day. And we’re continuing to further pursue densification and investment reduction opportunities in future factory buildouts like in Nevada.
Tesla is producing 4680 cells at its pilot plant in Fremont, but it is expected to reach higher volume production at Gigafactory Texas, which is the “cell factory” Baglino is talking about here.
to increase to ramp output? In the news today.
I thought Tesla already invested all that needs to deliver > 1.8M this year? May be the additional costs are for Cyber Truck production in Q3?
Really need some good news to hold on to 160s atleast.
I have seen driverless taxis in Arizona and they are in operation since more than 3 yrs but I agree it is difficult in a busy city. Can't imagine it can work in countries like India!
UK inflation numbers has put a dampener on the share price but EasyJet has low debt and majority of the bookings sold for next quarter and 25% for Q4.
With low debt of just 200M compared to 1.1Bn end Dec 2022, EZJ is the best place to invest. Any weakness next week is a gift to add more. Currently in with nearly £10k at £4.90 average.
As long as she buys in millions that's all I need!
If Tufan announces any news about entering narrow body aircraft then share price will literally double in a weeks time!
The news will come for sure. It is just a matter of when and not if!
One thing is sure, once JPM fires David Perry, he is not going to be recruited by anyone else! David Perry you lost your credibility. Why look stupid still when the share price doubled than your predictions since last year?
With him losing credibility, I don't think any other analyst would want to come up with such outrageous predictions. It is just a prediction and nothing else.
Those price targets by Cathy are not realistic but such price targets help atleast support the current price and many investors will be happy if the price hits $300 again!
I think once the inflation is in back door, Tesla will soar. Hopefully second half has mild recession and money comes back into growth stocks. There is lot of money sitting on sidelines.
Cathy bought yesterday but still it dropped by 10%. Hopefully her purchases gives assurance to those who are thinking of selling for loss.
In another news Tesla increased prices of Model S and Model X! Finally that is some good news?
Wood’s firm disclosed it bought 219,810 shares of Tesla in its flagship Ark Innovation ETF and another 36,213 shares of Tesla in its Next Generation Internet ETF.
Staunch and longtime Tesla bulls, Wood and Ark also released their projections for the automaker's future stock performance on Thursday, offering up quite the rosy picture.
Ark set a $2,000 base case scenario for Tesla’s share price in 2027, an 11-fold increase, setting its bearish forecast at a $1,400 share price and bullish at $2,500, eight-fold and 14-fold respective jumps
Driving Ark’s lofty expectations for Tesla were its forecasts for the company’s robotaxi, or driverless ride hailing, segment, projecting $200 billion in 2027 revenue from the unit in a bearish scenario and $613 billion in a bullish case, a seemingly tall ask for a division that currently brings in no revenue.
A 2022 Fortune Business Insights report predicted the global robotaxi market would surge some 6,000% from $1.7 billion to $108 billion from 2021 to 2029, still far, far short of what Ark expects just Tesla to rake in by 2027 in the unit. No analyst has a price target for Tesla above $310, according to FactSet.
https://www-forbes-com.cdn.ampproject.org/v/s/www.forbes.com/sites/dereksaul/2023/04/21/cathie-woods-ark-buys-42-million-in-tesla-predicts-1100-rise-for-the-slumping-stock/amp/?amp_gsa=1&_js_v=a9&usqp=mq331AQIUAKwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=16821076724753&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fdereksaul%2F2023%2F04%2F21%2Fcathie-woods-ark-buys-42-million-in-tesla-predicts-1100-rise-for-the-slumping-stock%2F
It is ridiculous that celebrities are complaining about paying just $8 a month for Twitter subscription!
Nothing is free in this world. Will the celebrities do free shows without taking money? Atleast one show?
Facebook copied the idea from Elon and yet no complains on FB!
Certainly buybacks didn't stop SP falling from 500p! SP down by 50% despite the buybacks. All that money went into the drain? They could have first targeted the debt and get it reduced to under 500m. If HBR can pay off the outstanding debt this year then that amount is reduced from profits this reduced tax? Net effect is that HBR is debt free! Then do the increased buybacks and dividends but is the WIndfall tax on net profit after deducting all company expenses?