Tesla (NASDAQ:TSLA) the “BB” of EV’s

Tesla (NASDAQ:TSLA) the “BB” of EV’s

Tesla (NASDAQ:TSLA) the “BB” of EV’s

$TSLA

Note: Building Cars is Hard

It wasn’t that long ago that the idea of a semi-autonomous, or even an electric car driving on public roads was incredibly far-fetched.

Sure, there were hybrids from companies like Toyota and Honda, but nothing that anyone with a straight face would call cool.

Tesla (NASDAQ:TSLA) changed all that, 1st with its roadster but then with its Model S and Autopilot. Its cars had an EV range over 200 miles and made caring about the environment and driving “the future” a status symbol.

Tesla changed everything in the automotive world and now, well now, the industry has caught up and Elon Musk’s company is mired in what he calls “Production Hell.”

Tesla — even with all its faults — has been incredibly important to the auto industry. In 2006 Musk dropped his master plan to sell high-end EVs to the well off to help create an electric car for everyone.

Car startups, even from established automakers, tend to die a sad long death.

But Tesla had hype and a grand vision on its side. It took a while though, 11 years before the company delivered the 1st of its affordable Model 3 to customers.

During that time though other automakers paid attention to the Silicon Valley company as it gained attention for its cars and Autopilot (its semi-autonomous feature).

This is especially true on the high end of the market. “I think that Tesla has been very influential in motivating the luxury brands to offer similar capabilities,” Gartner lead automotive analyst Mike Ramsey told Engadget.

It was more than the fear of missing out on the self-driving future that lit a fire under automakers. With the Model S, Tesla demonstrated that people actually wanted an electric car. So, while it was working on generating the capital and buzz for its Model 3, automakers like GM pounced, and introduced their own electric cars.

The result is the Bolt.

A long-range EV with a price tag of just under $30,000 with tax credits applied. Detroit took Tesla’s plan and beat it to market.

Meanwhile Tesla is struggling to get its Model 3 out of its factory.

“The problem is its popularity has risen so much that scale has become a bigger and bigger part of its business and it is no longer in reality a tech company, it is a manufacturing company for better or for worse,” Mr. Ramsey said.

Innovation is important to any industry and Tesla does that. But where does it go from here? Even if it hits its production goals, it’ll be over a year before anyone that orders a Model 3 today will have it delivered to their garage. In the automotive world, that’s not a win and the long lead time could affect the company’s health long term which could impact the battery and solar panel portions of the company.

If Tesla wants to get those cars on the road, it needs to focus less on car innovation and more on improving its manufacturing.

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Tesla doesn’t consider itself a car company in the traditional sense. In addition to cars, SUVs and an upcoming semi, it also has the Energy portion of the business.

The Powerwall and Powerpack help keep electricity flowing to homes, offices and more importantly, the grid.

It’s solar panels and Solar Roof help homeowners reduce their electric bill and carbon footprint. Everything the company does is centered around a goal of reducing the filth we push into the air. It’s a lofty and commendable mission.

But it’s the cars that get the press, and that makes them an important part of the company’s bottom line and brand.

Automakers are on-board for an electrified future with many promising EV or hybrid models in Y 2019. And it is tough to find a company that’s not working on an autonomous car.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 308.7 14 November 2017 -6.70 315 316.35 306.9 5,658,000
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bearish (-0.44) Very Bearish (-0.55) Bearish (-0.27) Very Bearish (-0.50)

By Robert Baldwin

Paul Ebeling, Editor

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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