TSLA
Tesla talks subscriptions, software licensing and 4680 battery on
conference call
- Tesla (NASDAQ:TSLA) reiterated during tonight's earnings conference
call that it thinks it can see 50% growth rate for several years and
perhaps even exceed that rate.
- In a twist of EV solidarity, CEO Elon Musk says the company has held
talks on licensing its software and is open to letting other companies
use
the Supercharger network.
- On the Cybertruck, Musk says to expect a few deliveries this year and
for volume production to start in 2022
- Tesla says it will be offering FSD subscriptions "very soon."
- A potential headwind for Tesla could be chip shortages.
- Probably the most crucial pullout from the call is that Tesla says it
will be able to start mass producing the 4680 battery in 2021.
- Wall Street takes are already pouring in.
- Wedbush Securities analyst Dan Ives: "While delivery/production
numbers were known and beat the Street's expectations given the current
economic backdrop, investors continue to be laser focused on the
profitability picture of TSLA. GAAP gross margin was 19.2% which was
below
Street expectations of 23.5% (with automotive gross margin of 24.1% vs.
consensus of 27.2%); the all important Automotive GM ex-credits was
20.7%,
slightly down from the year ago period of 20.9% but remaining in a
healthy
range. We note that Adj. EBITDA saw strong growth (up 57% y/y) coming in
at
$1.85 billion/margin of 17.2% vs. $1.18 billion/margin of 15.9% but like
the rest of the profitability metrics was below the Street estimate of
$2.22 billion. Importantly, all eyes will be focused on the company's
delivery unit guidance for 2021, with the trajectory looking like ~750k
to
800k with our view that the 1 million threshold could be hit by 2022 for
Tesla."
- CFRA Research analyst Garrett Nelson: "In short, TSLA posted another
solid quarter of operational execution and impressively almost hit an
ambitious sales target despite the pandemic-related challenges it faced
in
2020 (i.e., the temporary shutdown of Fremont). Following the stock's
spectacular 2020 performance (+743%), capped off by the S&P 500 addition,
we view TSLA's risk/reward as more balanced at current levels. With the
Germany and Texas factories unlikely to begin production until late this
year, we think TSLA's quarterly volume run-rate in 2021 will be more
similar to the Q4 level and it will finally face some legitimate
competition in the EV space (i.e., vehicles with more comparable specs)."
- Shares of Tesla are down 5.47% in AH trading as the EPS misses stings
sentiment a bit.
|Today, 7:33 PM|134 Comments
Tesla talks subscriptions, software licensing and 4680 battery on
conference call
- Tesla (NASDAQ:TSLA) reiterated during tonight's earnings conference
call that it thinks it can see 50% growth rate for several years and
perhaps even exceed that rate.
- In a twist of EV solidarity, CEO Elon Musk says the company has held
talks on licensing its software and is open to letting other companies
use
the Supercharger network.
- On the Cybertruck, Musk says to expect a few deliveries this year and
for volume production to start in 2022
- Tesla says it will be offering FSD subscriptions "very soon."
- A potential headwind for Tesla could be chip shortages.
- Probably the most crucial pullout from the call is that Tesla says it
will be able to start mass producing the 4680 battery in 2021.
- Wall Street takes are already pouring in.
- Wedbush Securities analyst Dan Ives: "While delivery/production
numbers were known and beat the Street's expectations given the current
economic backdrop, investors continue to be laser focused on the
profitability picture of TSLA. GAAP gross margin was 19.2% which was
below
Street expectations of 23.5% (with automotive gross margin of 24.1% vs.
consensus of 27.2%); the all important Automotive GM ex-credits was
20.7%,
slightly down from the year ago period of 20.9% but remaining in a
healthy
range. We note that Adj. EBITDA saw strong growth (up 57% y/y) coming in
at
$1.85 billion/margin of 17.2% vs. $1.18 billion/margin of 15.9% but like
the rest of the profitability metrics was below the Street estimate of
$2.22 billion. Importantly, all eyes will be focused on the company's
delivery unit guidance for 2021, with the trajectory looking like ~750k
to
800k with our view that the 1 million threshold could be hit by 2022 for
Tesla."
- CFRA Research analyst Garrett Nelson: "In short, TSLA posted another
solid quarter of operational execution and impressively almost hit an
ambitious sales target despite the pandemic-related challenges it faced
in
2020 (i.e., the temporary shutdown of Fremont). Following the stock's
spectacular 2020 performance (+743%), capped off by the S&P 500 addition,
we view TSLA's risk/reward as more balanced at current levels. With the
Germany and Texas factories unlikely to begin production until late this
year, we think TSLA's quarterly volume run-rate in 2021 will be more
similar to the Q4 level and it will finally face some legitimate
competition in the EV space (i.e., vehicles with more comparable specs)."
- Shares of Tesla are down 5.47% in AH trading as the EPS misses stings
sentiment a bit.
|Today, 7:33 PM|134 Comments
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