$TSLA Stock Update for 2020-10-14

Financials

  • Market return: 6% Month, 44% Quarter, 206% Half year, 769% Year
  • EPClub ARR: 109% (#2)
  • Recommend: 3
  • PEG: n/a
  • EPS next 5Y: n/a

 

Summary:

  • Looking stronger every month
  • Hold

 

Notes:

  • After years in development and no shortage of serious setbacks, the California-based electric car giant is set to begin beta testing its new self-driving software next week. Following a complete system rewrite, the select group of chosen drivers will gain access to the update, which will include Full Self-Driving (FSD) mode, a significant advance from previous editions. In April, founder Elon Musk announced that the autonomous feature would be publicly available by the end of 2020.
  • Not only will it be a boon to the company for being the first major marque to have such autonomous driving widely available, but it is also a necessity before Tesla can deploy the self-driving taxis it hopes to have on the road in a handful of markets sometime next year.
  • Tesla has performed phenomenally well even as its competitors have struggled. Rally after rally saw its stock soar to the point that it became more valuable than industry heavyweights Ford and GM combined. Not long after, more stock surges pushed the company to become the word’s most valuable automaker, eclipsing Japan’s Toyota for the top spot.
  • Musk received the largest payout in corporate history for an executive––a whopping $2.1 billion––with more such windfalls likely on the way.
  • Electric cars vastly outpaced sales of fossil-fuel vehicles in China in September as the Chinese auto market continues to come off coronavirus lows. But Tesla (TSLA) sales there fell from the prior month. Electric-car stocks fell closed mixed.
  • Tesla sold 11,329 Model 3s in China last month, a 4% drop from August, according to the China Passenger Car Association. Other reports said Tesla ranked third in NEV wholesales last month, behind the General Motors (GM)-SAIC-Wuling joint venture and BYD (BYDFF).
  • S&P Global Ratings extended its bullish appraisal of electric vehicle maker Tesla, Inc. (NASDAQ: TSLA), upgrading the company’s debt rating from B+ to BB-. The raise puts the electric automaker just two notches from “investment grade” ratings.
  • “The stable outlook reflects our view that Tesla’s competitive position remains solid and its credit metrics will stay in line with our expectations,” S&P stated in a press release.
  • While the battery electric vehicle (BEV) market remains “a sliver” of total U.S. auto sales, Tesla’s BEV market share in the U.S. stood at almost 80% in the first half of 2020, according to the release.
  • S&P’s latest forecast projects Tesla deliveries of over 470,000 in 2020 and over 800,000 in 2021 as production for the Model Y increases.
  • “This ramp-up in production was significantly faster than its initial Model 3 ramp-up, which took over nine months to reach the same weekly rate,” the release stated. “We expect further improvements in efficiency, cost and technology as Tesla builds on lessons learned from prior factories.”
  • In July, Tesla announced it will build its newest Gigafactory near Austin, Texas. The 2,000-acre site will be used to build the Cybertruck, the Tesla Semi and the Model 3 and Model Y for the eastern half of North America.

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