Tag Archives: EV Investment

I’m Gonna Just Put This Right Here…

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“While Tesla has built a very dedicated fan base that has been willing to excuse poor build quality, customer service, and service infrastructure, we continue to be skeptical around broader adoption,” Osborne said. He rates the shares underperform with a price target of $210, implying a 51% decrease. Of the analysts tracked by Bloomberg, 15 analysts rate the shares the equivalent of a sell, while 11 rate it buy and 10 hold, with an average price target of $297.

Bloomberg, 12/30/19

Some other bearish analysts also raised their prices targets after the third-quarter numbers. Credit Suisse analyst Dan Levy took his price target from $189 to $200 a share, and J.P. Morgan analyst Ryan Brinkman raised his from $200 to $220 a share.

Barron’s, 10/25/19

Ives maintained a price target on Tesla stock of $270, with a neutral rating.

Investors Business Daily, 11/22/19

Can Tesla Ever Be More Than a Niche Automaker? Wall St. Increasingly Thinks No

New York Times, 6/3/19

Cross-Sell Interactive is trying to give investors a new edge on Tesla stock by tracking new-vehicle registration data in two dozen states. Cross-Sell’s third quarter report—released Monday evening—is alarming, showing lower prices and stagnant sales.

Barron’s, 10/15/19

Goldman: Tesla’s earnings and deliveries likely to disappoint this quarter, so sell the stock

CNBC, 3/13/19

Just because it trades 22% off its high ($302), does not make Tesla a buy.

Forbes, 1/20/19

I expect the stock to continue to fall over the rest of the year and into 2020, as Tesla continues to miss its targets as a result of under-investment, constant turnover in the executive ranks, and unrealistic promises.

I will not be surprised to see the Shanghai Gigafactory run behind schedule and fail to start production this year.

Forbes, 9/9/19

At this point, TSLA stock has had several months of poor performance, both in terms of metrics and the stock price. Therefore, before committing any capital into the shares, I’d like to see the next earnings statement, expected in late October. By then, we might even have an earnings warning statement, which would send the stock even further south.

InvestorPlace.com, 8/19/19

Forget $300, Can Tesla Stock Reliably Get Back to $200?

InvestorPlace.com, 6/5/19

Ford’s EV plans less than they seem

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Ford to cut costs $14 billion, invest in trucks, electric cars: CEO
Reuters

Ford Motors plans to slash $14 billion in costs over the next five years, Chief Executive Officer Jim Hackett told investors on Tuesday, adding that the No. 2 U.S. automaker would shift capital investment away from sedans and internal combustion engines to develop more trucks and electric and hybrid cars.

By 2022, Ford plans to cut spending on future internal combustion engines by a third, or about $500 million, putting that money instead into expanded electric and hybrid vehicle development, on top of $4.5 billion previously announced. Ford had already promised 13 new electric or hybrid vehicles within the next five years.

Right, this looks good on paper (or on photons if you prefer), but it is a bit misleading and somewhat contradictory. Moving 1/3 of your spending from ICE to EV is nice, but you are still investing a lot of money in polluting vehicles (and I doubt they will be discontinuing their pickups and SUVs anytime soon. But hey, I’ll take what I can get). But, I am puzzled about how you can develop “13 new electric or hybrid vehicles within the next five years” and cut $14 billion in costs. Designing and building new vehicles takes a LOT of money. Perhaps he thinks he can just take gasoline cars and stick electric motors in them. If so, he will soon learn that it’s a bit more complicated. Sure, you can do that, but you wind up with a car with lackluster range and performance (like the Ford Focus EV).

Also, are these cars for the U.S. market, or the Chinese market? He doesn’t specify.

He did have two ways of saving money that made sense.

One way to cut costs will be to offer fewer variations of Ford’s models, Hackett said. The slow-selling Ford Fusion midsize sedan can now be ordered in 35,000 combinations of features, colors and powertrain options. The future model will come in just 96 combinations, meaning fewer parts to design, produce and store in inventory, Ford showed in a presentation.

He said Ford also will cut the time it takes to engineer a new car by 20 percent, and invest in “factories of the future” that will occupy less space and use more robots.

Golly, he sounds just like Elon Musk.